Title: Policy support for innovation to secure improvements in resource productivity

Authors: Robert Gross, Tim Foxon

Addresses: Imperial College Centre for Energy Policy and Technology, 4th Floor, RSM Building, Prince Consort Road, London SW7 2BP, UK. Imperial College Centre for Energy Policy and Technology, 4th Floor, RSM Building, Prince Consort Road, London SW7 2BP, UK

Abstract: This paper presents the case for direct policy support for environmental innovation, aimed at improving resource productivity, as a complement to standard regulatory or market-based instruments of environmental policy. This case is that investments in environmental innovation create options, reduce uncertainties and give rise to positive externalities, i.e. wider benefits to society and future generations, thus reducing the long-term costs of tackling environmental problems. It is argued that these policy instruments can be classified according to how they: support basic R&D; help to develop markets for innovative new products or processes; or provide financial incentives for the development or deployment of cleaner technologies. The paper argues that more widespread adoption of such policy instruments is needed, together with systematic analysis and assessment of their effectiveness in stimulating environmental innovation in different industries and at different stages of the innovation cycle.

Keywords: environmental innovation; policy instruments; resource productivity; positive externalities.

DOI: 10.1504/IJETM.2003.003399

International Journal of Environmental Technology and Management, 2003 Vol.3 No.2, pp.118 - 130

Published online: 05 Sep 2003 *

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