What Environment and Innovation Policies for What Dynamics of Environmental Innovation?

By Marc-Hubert Depret, Abdelilah Hamdouch

While there is today a large consensus concerning the extent and causes of climate change and environment deterioration, as well as their mid-long term economic consequences if nothing is done, the international community remains divided regarding the nature, the scale and the schedule of the remedying actions that should be undertaken. In order to clarify the ongoing debates concerning these pending issues, economic analysis has proposed a series of interesting solutions based upon various institutional mechanisms and market devices. Paradoxically, environmental innovation occupies only a secondary role within this policy framework while many experts and analysts consider it as a key solution to environmental problems. Moreover, it is widely agreed that some environmental innovations should represent a considerable economic potential in the long term. How can one explain this paradox? The article explores the following idea: innovation is not a core component in the agenda of policy-makers in charge of environment and climate issues because innovation policies as well as environmental policies are usually inappropriate, and because these policies are usually designed and implemented without any due coordination among them. JEL: B52, E6, L5, O3, Q55


  • co-evolution
  • environmental innovations
  • firms
  • incentives
  • public policies
  • sustainable development
Go to the article on Cairn-int.info