The role of the regulatory framework for innovation activities: the EU ETS and the German paper industry

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The role of the regulatory framework for innovation activities: The EU ETS and the German paper industry Terms of use: Documents in EconStor may AbstractBased on a research framework which combines environmental economics and innovation studies, we explore the relevance of the regulatory framework for innovation activities in the German paper industry, with a focus on climate policies. Innovation activities considered include research and development, adoption and organizational change. Empirically, we mainly rely on the survey data of paper producers and technology providers. Findings suggest that innovation activities are mainly governed by market factors and (as yet) are hardly affected by the European Emission Trading System and other climate policies. Also, the impact of these policies on innovation activities is lower for technology providers than for paper producers. However, the majority of companies expect the effects of the regulatory climate policy framework on innovation to increase by 2020.

Free allocation in the 3rd EU ETS period: assessing two manufacturing sectors

“…However, arguments from business economics and bottom-up studies on firm behaviour suggest that free allocation and firm-level oversupply of EUAs could dampen firm responses in terms of innovation and investments in low-carbon solutions and thereby decrease the efficiency of the system (Abrell et al, 2011, Gulbrandsen & Stenqvist, 2013aMartin et al, 2014;Rogge et al, 2011;Skjaerseth & Eikeland, 2013). Furthermore, allocation substantially more compared to expected emissions could damage the perception of the system among stakeholders such as NGOs and competing industries see e.g.…”

“…In particular for the pulp and paper sector there are studies of corporate responses that cover industries in countries such as Italy, Sweden, Norway and Germany (e.g. Gasbarro et al, 2013;Gulbrandsen & Stenqvist, 2013a;Rogge et al, 2011). These studies conclude that EU ETS has brought some organisational changes while the effects are limited in terms of triggering of innovative low-carbon solutions and long-term climate strategies.…”

“…These studies conclude that EU ETS has brought some organisational changes while the effects are limited in terms of triggering of innovative low-carbon solutions and long-term climate strategies. The carbon price tag is not fully integrated in the firm's operational practices (Rogge et al, 2011) and is anyhow a minor incentive among the many factors that underpin investment decisions in the pulp and paper industry (Gulbrandsen & Stenqvist, 2013a). The lack of stringency with a high share of free allocation, the possibility of different perceptions about real cost versus opportunity costs, and the volatile but often low EUAs price are suggested explanations for the limited effects of EU ETS so far.…”

An Exploratory Analysis on the Contextual Factors that Influence Disruptive Innovation: The Case of Uber

“…• Regulatory framework captures the outcome of the public intervention of an administrative entity, which influences the spontaneous actions and decisions taken by economic actors (Philips, 1971; Ross and Scherer, 1990;Artoni, 2001). Thus, the regulatory framework can influence competition in a given industry, by shaping the competitive mechanisms, creating entry barriers for new entrants and influencing the scope of innovation activities (Rogge et al, 2011). Again, this explains why the characteristics of the regulatory framework are likely to have a key impact on the outcome of the disruptive innovation process.…”

Using Floor Price Mechanisms to Promote Carbon Capture and Storage (Ccs) Investment and Co2 Abatement

“…The results revealed that the EU ETS had no significant effect on a company's decision to invest in carbon-mitigating technologies. Rogge et al [9] explored the relevance of climate policies on innovation activities in the German paper industry, based on survey data of paper producers and technology providers. Findings suggest that innovation activities are minimally affected by the EU ETS and other climate policies.…”