Innovations and the Environment

Transcription

1 Innovations and the Environment

2 Yoram Krozer Innovations and the Environment 123

3 Yoram Krozer, PhD Cartesius Institute Institute for Sustainable Innovations of the Netherlands Technical Universities Zuidergrachtswal AD Leeuwarden The Netherlands ISBN e-isbn DOI / British Library Cataloguing in Publication Data Krozer, Yoram Innovations and the environment 1. Technological innovations - Environmental aspects 2. Environmental protection - Technological innovations 3. Technological innovations - Economic aspects 4. Sustainable development I. Title 608 ISBN-13: Library of Congress Control Number: Springer-Verlag London Limited Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers. The use of registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant laws and regulations and therefore free for general use. The publisher makes no representation, express or implied, with regard to the accuracy of the information contained in this book and cannot accept any legal responsibility or liability for any errors or omissions that may be made. Cover design: estudio Calamar S.L., Girona, Spain Printed on acid-free paper springer.com

4 Preface This book Innovations and the Environment aims to review the state of knowledge and to provide an empirical basis for the development and use of new technologies, products and services to reduce the impact of human activities on environmental quality. This is at the core of the debate on economics and the environment. The message is optimistic. Advances in thinking and actions make it possible to maintain high environmental quality at reasonable costs, sometimes even having a positive effect on corporate results. The progress is by no means automatic. Risk taking by entrepreneurs, managers and policy makers is necessary. The idea to write a book about innovations and the environment was born during discussions with Professor Han Brezet who was convinced of the importance of this subject for engineering students. This is because he has found many stories about the successes and failures of environmental technologies and even more on the impact of technologies on environmental qualities, but no reviews on technology and the mindset of entrepreneurship to explain the forces that drive innovations for sustainable development. Profitability is this book s starting point because it is essential for any innovator. The basic question is how to achieve profitable innovations for improvements in environmental quality, or as my daughter Mira put it: How can nagging about the environment pay? The material included is largely based on the experiences of companies and authorities in the Netherlands during the 1980s and 1990s that have been global trailblazers in innovating for the environment. The book is a result of my entrepreneurial activities at the Institute of Applied Environmental Economics. Partners and colleagues at the Institute provided a lot of support during its writing. In particular, I am grateful to Jochum Jantzen for the use of so much empirical material on the cost of technologies. Petra Doelman helped me a lot with her experience in business development at starting innovative companies CES and Avanti, and in Philips. Most of all, it was exciting to cooperate with brilliant people working in many companies. I will mention only a few by name, the creators of environmental management who are unfortunately no longer with us: Cees van Leeuwen, environmental manager for the Unilever companies; Jan de Haas, quality manager for retailer Vroom & Dreesman; Cornelis Betlem, business developer at Ahrend, Bram van de Drift of Philips and Coos

5 vi Preface Veldman, general director at Wagenborg Shipping. These men have moved environmental management towards the highest standards of social responsibility. The book was finished during my academic work at the Cartesius Institute. In particular, Professor Andries Nentjes a founding father of environmental economics in Europe helped me avoid many scientific traps through his strong guidance. I am indebted to Simon Tijsma at the provincial authority of Friesland for his valuable comments on conclusions regarding the realities and peculiarities of policy making. Lisa Hayes was extremely helpful with language and Satish Kumar Beella with editing. This book is dedicated to my mother, Raisa Grigorievna.

6 Contents 1. Introduction Technology for Sustainable Development Sustainable Development Theories on Environmental Technological Progress Neoclassical Theory Evolutionary Theory Behavioral Theory A Framework on Environmental Innovations Conclusion Projecting the Cost of Emissions Reduction Best Available Technologies Theories on the Cost Function of Emissions Reduction Construction of the Cost Functions Effectiveness of Policy Making Emissions Reduction Scale and Unit Cost Streamlined Cost Functions Explanation of the Results Conclusion...45

7 viii Contents 4. Projecting Innovation Costs and Benefits Adaptations and Innovations The Attractiveness of Environmental Innovations Social Benefit of Environmental Innovations Conclusion Environmental Policy and Technological Progress Productivity and Environmental Demands Effect-increasing and Cost-reducing Technological Progress Factors that Contribute to Technological Progress Conclusion Policy Demands and Environmental Management Environmental Management Compliance Versus Anticipation Benefit of Environmental Management Conclusion Social Demands and Environmental Management Social Demand for Products Life-cycle Valuation Model for Environmental Strategies Cases of Life-cycle Management Conclusion Environmental Policy for Innovations Induced Innovations Instrument Theories and Technological Development Policy and Innovation Cycles Uncertainties for the Innovator...118

8 Contents ix 8.5 Model for Environmental Innovations Conclusion Does Self-regulation Work? Self-regulation in Practice Self-regulation in Theory Experience with Stakeholder Negotiations Model for Self-regulation Conclusion How to Progress? Innovations Reduce Costs Conditions for Cost-saving Innovations A Appendix to Chapter B Appendix to Chapter C Appendix to Chapter D Appendix to Chapter E Appendix to Chapter References Index 201