1 BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES M. Sc. Engineering Policy and Technology Management Por: Carlos Chambel Miguel Leocádio BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES

2 BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES M. Sc. Engineering Policy and Technology Management Double Dividend hypothesis:...the ability to simultaneously profit and improve environmental performance... Competitiveness and environmental protection can be compatible Economic growth vs. environmental protection

3 BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES M. Sc. Engineering Policy and Technology Management Assessing the Double Dividend hypothesis Technical innovation Product innovation Process innovation Resource productivity Increase profit Reduce environmental impact Environmentalregulation Environmentalregulation

4 BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES M. Sc. Engineering Policy and Technology Management Environmental regulation and the evidence for... Anti-thesis: increased capital and labour costs productive investiments old – firms competitiveness perverse incentives flight to pullution havens Thesis: information generation creating opportunities reduce future uncertainty about environmental requirements creation of a competitive environment

5 BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES M. Sc. Engineering Policy and Technology Management InnovationandCompetitiveness GOVERNMENTSGOVERNMENTS Policy Instruments (R&D, information, voluntary agreements and technology assistance) Environmental Regulation DOUBLE DIVIDEND vs. GOVERNMENTS

6 BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES M. Sc. Engineering Policy and Technology Management InnovationandCompetitiveness FIRMSFIRMS Environmental issues as Internal strategic issues DOUBLE DIVIDEND vs. GOVERNMENTS Process and product improvements (reducing imputs and waste, product take-back and moving from product to services) Radical changes in processes and products

7 BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES M. Sc. Engineering Policy and Technology Management Power and power supply Moving from product to service ENRON Contratação de todos os serviços de energia (preço fixo p/ ex) energy savings INTERFACE CARPET To lease X to sell apostar em materiais 100% recicláveis Carpetes e revestimentos

8 BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES M. Sc. Engineering Policy and Technology Management supply push US wind turbine policy – 1980 Federal & state policies created demand (credit taxes) California MW$25 $05 KW/h demand pull policies were too short-lived US wind turbines did not survive demand pull

9 BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES M. Sc. Engineering Policy and Technology Management US Star Office Products: US Star Office Products: Objectivosexpandir o mercado de produtos energeticamente eficientes aumentar a eficiência energética dos produtos Policiesstandard for performance level, support to firms on production, encourage to procurement offices to buy Energy Star products Federal Ordergovernment offices buy Energy Star products US gas turbine policy – 1990 Mandato legislativo c/requisitos: desenvolver turbina ultraeficiente, limpa, 60%, NO x 10 ppm, custo 10% \ Programa de I&D (shared risk cost sharing) 10% 40-70% supply push demand pull supply push demand pull

10 BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES BEYOND THE DOUBLE DIVIDEND: PUBLIC AND PRIVATE ROLES IN THE SUPPLY OF AND DEMAND FOR ENVIRONMENTALLY ENHANCING TECHNOLOGIES M. Sc. Engineering Policy and Technology Management ESTADO Supply-push Políticas de ambiente e inovação Investimento em I&D Regulação Contribuição de Know-how EMPRESAS Inovação Investimento em I&D Oportunidades de Mercado (inovação) ESTADO Demand-pull Particularmente nas fases iniciais Sinergia Conclusões: