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284 P. Ekins 2. Office appliances—Innovation levels as identified in Japan and the USA were high and directly correlated to the respective policies which were implemented, in both cases strict public procurement policies. In Japan these were combined with increasingly stringent standards. The European case study saw that there was an uneven use of energy efficiency criteria in member states’ public ICT tenders. This is coupled with the fact that the EU still tends to shy away from mandatory energy efficient public procurement despite industry support. 3. Photovoltaics—This sector has undergone rapid, and innovative, development in recent years. Japan and Germany have both encouraged significant expansion and development of the sector through substantial financial incentives and R&D support. With far lower financial commitment, the UK has not managed to achieve substantial deployment of installed PV capacity. 4. Pulp and paper—In Europe there has been innovation with respect to abatement technologies, but the extent to which this has been induced by policy is not clear. Insofar as an effect is discernible, it seems to be more due to the characteristics of the instrument (e.g. its stringency) than to the nature of the instrument itself. 5. Hazardous chemicals—In general there has been success in encouraging innovation or diffusion of existing technology. Policy approaches in Sweden, Denmark and Germany have in different ways all been influential in encouraging innovation and reducing environmental impact. There is an interesting contrast between approaches that seek to reduce the use of hazardous substances (Sweden, Denmark) and those that seek to contain them (Germany). It is of note that Sweden and Denmark, the two EU countries applying the substitution principle, also have the highest rate of R&D in their respective chemical industries. Table 2 categorises the environmental policy instruments used, as revealed by the case studies, in terms of the typology above, and shows whether the type of innovation which seems to have been primarily induced was end-of-pipe, processintegrated or product innovation. It also provides an overall indication of the success of the policy in inducing eco-innovation. Table 2 shows that a wide range of different environmental policies has been used in different countries, ranging in Europe across voluntary approaches, directives, investments, grants, bans, taxes and technical standards. In the USA classic regulation, i.e. command-and-control, appears most common. Across the case studies there are a number of cross-cutting themes with policy implications. & Technological development—One assumes that most regulatory approaches seek to allow for technological development and increasing efficiencies over a time period. However, the technical expertise required to understand all factors at play in such sectors as the hazardous chemicals sector or the PV sector is formidable, and there are bound to be problems of asymmetric information between industry and the policy maker. & Commercial factors—The extent of innovation is often reflected in commercial learning curves and economies of scale associated with the production and development of new technologies and processes. These developments will rarely
Eco-innovation for environmental sustainability 285 Table 2 Comparison of innovation observed Policy type Innovation type experienced Policy result in inducing innovation Country or area Case study Product Innovation Process Integrated End of Pipe Voluntary Information Based Classic Regulation Incentive/Market- Based 1 Europe Medium X X 1 USA Poor X X 1 Japan Good X X X X 2 Europe Poor X a X 2 USA Excellent X X X 2 Japan Excellent X X X X 3 Germany Good X X 3 Japan Excellent X X X 3 UK Poor X X X 4 Various Unclear X X X 5 Sweden Good X X 5 Denmark Good X X 5 USA Good X X 5 Germany Excellent X X b a Although a Directive is used, and an obligation is present, other considerations supersede obligations making the approach voluntary. The option of mandatory public procurement is being discussed currently by the European Community Energy Star Board. b Although there has been product innovation, a main success of the policy has been the eco-innovation of new processes and capital stock together with a reduction in the use of hazardous chemicals.
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