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The Dynamics of Environmental

and Economic Systems

Valeria Costantini • Massimiliano Mazzanti

Editors

The Dynamics

of Environmental

and Economic Systems

Innovation, Environmental Policy

and Competitiveness

Editors

 

Valeria Costantini

Massimiliano Mazzanti

Department of Economics

Department of Economics

University of Roma Tre

and Management

Rome, Italy

University of Ferrara

 

Ferrara, Italy

 

CERIS CNR Milan, Milan

ISBN 978-94-007-5088-3 ISBN 978-94-007-5089-0 (eBook)

DOI 10.1007/978-94-007-5089-0

Springer Dordrecht Heidelberg New York London

Library of Congress Control Number: 2012944746

# Springer Science+Business Media Dordrecht 2013

This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher’s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law.

The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.

While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein.

Printed on acid-free paper

Springer is part of Springer Science+Business Media (www.springer.com)

To Anna Chiara and Jean Paul

There were days on the Atlantic Ocean when there was not a single cloud on the horizon and the sea and the sky were the same deep blue. On those days, a penetrating sun would light up the surging masses of water, the white crests of the waves would break into streaks of foam, the boat would roll on those huge mountains of water and a relentless wind would whip up dusty spray that created fleeting rainbows near the prow. Those were the kind of days that some people would give their life to experience, if only in a figurative sense. But these were also the days that most people probably would do anything to avoid, if only because they fear to die. Or to live.

(Personal translation from

Bjo¨rn Larsson “Dro¨mmar vid havet”, 2001, Norstedts Pocket (p. 1) (translation authorized by the author))

Acknowledgements

Since the book project is balanced between senior and junior scholars, we are indebted to a number of friends and colleagues, both older and younger than us. We wish to acknowledge comments and ideas received by many of them over the years. Nevertheless, though we have many intellectual debts, we are especially thankful to some of them in particular. Some appear as authors in this book, others do not. Among those that do not appear as authors we recognize Simone Borghesi, Giulio Cainelli, Alessio D’Amato, Fabrizio De Filippis, Susanna Mancinelli, Anna Montini, Sandro Montresor, Rosella Virdis, Roberto Zoboli and Mariangela Zoli who have stimulated and generated most of the ideas we present and develop in the book. Finally, we regret to have published this book too late to give it to Mauro Mellano and David Pearce, whose lessons are still alive in our minds.

We hope to have paid off at least part of this debt over the years and look forward to working with all of them in a bright future. We believe that ‘humans are imitations: a human being becomes a human being only through the imitation of other humans. This behaviour, which is the basic form of love, embeds the elements of the utopia that can shake and turn over a hierarchical social system. The self is a ghost, since the self is not only intrinsically related to society, but owes its existence to it [. . .]. The more a human being displays freely into society and reflects him/ herself in it, the richer he/she is’.1

Although human interactions are crucial to feeding lively minds, we must not overlook the financial support received during this period from several institutions. Massimiliano Mazzanti acknowledges the support of local annual funds from the University of Ferrara, and Valeria Costantini the support of local annual funds from the University Roma Tre. This book has benefited from technical assistance provided by the research network Enea-Inea-Uniroma Tre on ‘Integrating bottomup and top-down energy models: the case of GTAP-E and Markal-Italy’. Financial

1 Personal translation from Adorno T. W. (1979). Minima Moralia. Meditazioni della vita offesa, Torino: Einaudi (second part, 1945, pp. 181–183). Original edition Adorno T. W. (1951). Minima Moralia. Reflexionen aus dem beschadigten Leben. Franfurt am Main: Shurkamp Verlag.

vii

viii

Acknowledgements

support given by the Italian Ministry of Education, University and Research (Scientific Research Program of National Relevance 2007 on ‘European Union policies, economic and trade integration processes and WTO negotiations’) is also gratefully acknowledged. The ‘EMInInn—Environmental Macro Indicators of Innovation’ project (283002 FP7-ENV-2011-ECO-INNOVATION-OneStage) funded by the European Commission is also a precious source of financial support as well as a strong channel for enhancing linkages between European researchers.

Finally, a special thank goes to Susan Goodall, whose precious work in editing activities has been crucial for finalizing the book project.

Valeria Costantini and Massimiliano Mazzanti

Contents

Part I Modelling Macroeconomic Scenarios: Energy Issues, Economic Performances and Environmental Policy

1

The GTAP-E: Model Description and Improvements . . . . . . . . . . .

3

 

Alessandro Antimiani, Valeria Costantini, Chiara Martini,

 

 

Alessandro Palma, and Maria Cristina Tommasino

 

2

Carbon Leakage and Trade Adjustment Policies . . . . . . . . . . . . . .

25

 

Alessandro Antimiani, Valeria Costantini, Chiara Martini,

 

 

Luca Salvatici, and Maria Cristina Tommasino

 

3

Theoretical Approaches to Dynamic Efficiency in Policy Contexts:

 

 

The Case of Renewable Electricity . . . . . . . . . . . . . . . . . . . . . . . . .

45

 

Pablo Del Rı´o and Mercedes Bleda

 

4

Energy Efficiency Policy in the USA: The Impact of the Industrial

 

 

Assessment Centres (IAC) Programme and State and Regional

 

 

Climate Policy Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

61

 

Luis Maria Abadie, Ramon Arigoni Ortiz, Ibon Galarraga,

 

 

and Anil Markandya

 

5The Role and Effectiveness of Environmental and Social Regulations in Creating Innovation Offsets and Enhancing

Firm Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Marcus Wagner

Part II Environmental Innovation and Competitiveness: Linking Micro, Meso and Macro Analysis in the Dynamics

6 Implications of Policy Uncertainty for Innovation in Environmental Technologies: The Case of Public

R&D Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Margarita Kalamova, Nick Johnstone, and Ivan Hasˇcˇicˇ

ix

x

Contents

7Eco-Activity and Innovativeness: What Is Their Relation to Environmental Performance in Consumer Firms

and Industrial Firms? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

Nicoline Oehme and Rene´ Kemp

8 Environmental Policy and Induced Technological Change

in European Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

Francesco Crespi

9 Closing the Gap? Dynamic Analyses of Emission Efficiency

and Sector Productivity in Europe . . . . . . . . . . . . . . . . . . . . . . . . . 159 Giovanni Marin

10 Waste Technological Dynamics and Policy Effects: Evidence

from OECD Patent Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

Francesco Nicolli

11 BioPat: An Investigation Tool for Analysis of Industry Evolution, Technological Paths and Policy Impact in the Biofuels Sector . . . . 203 Valeria Costantini, Francesco Crespi, and Ylenia Curci

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227