Title: The adoption and diffusion of environmentally friendly technologies among firms

Authors: Peter Nijkamp, Caroline A. Rodenburg, Erik T. Verhoef

Addresses: Department of Spatial Economics, Free University Amsterdam, De Boelelaan, 1105, 1081 HV Amsterdam, The Netherlands. Department of Spatial Economics, Free University Amsterdam, De Boelelaan, 1105, 1081 HV Amsterdam, The Netherlands. Department of Spatial Economics, Free University Amsterdam, De Boelelaan, 1105, 1081 HV Amsterdam, The Netherlands

Abstract: This paper discusses the adoption and diffusion of environmentally friendly technologies among firms from a micro-economics perspective. First, some theoretical backgrounds are given on issues like the process of the development and adoption of environmentally friendly innovations, the adoption of new technology in a market equilibrium, and general market failures which influence the working of the market in a situation of market equilibrium. Next, we discuss possible policy instruments to stimulate the adoption process. Finally, we provide some empirical evidence on investments in environmentally friendly technology, based on a recent survey held in The Netherlands.

Keywords: energy use; environmental policies; technology adoption.

DOI: 10.1504/IJETM.2001.000742

International Journal of Environmental Technology and Management, 2001 Vol.1 No.1/2, pp.87-103

Available online: 17 Jul 2003 *

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