The diffusion of clean technologies: a review with suggestions for future diffusion analysis

René Kemp, Massimiliano Volpi

Paul Butler

Available online 3 December 2007

Clean Technology Diffusion

• Pollution Control Technologies

• Cleaner manufacturing processes

• Waste Management Techniques

• Clean Processes not Products

• Early adopters

• Early majority

• Late majority• Laggards

5 Classes of Adopter

• Innovators

Stylised Fact No. 1Technology Adoption is not instantaneous

Stylised Fact No. 2The diffusion of one innovation affects the diffusion of another innovation

• Process Adaptations

• New Processes

• End of Pipe

Stylised Fact No. 3+4Technology diffusion involves information transfer and has elements of innovation.

Technology diffusion is not simply a matter of information transfer.

EPIDEMIC Model

Stylised Fact No. 5The more economically attractive a technology is, the quicker it will be adopted and the greater the number of companies that will adopt it.

The higher the gain, the faster the diffusion as a general rule.

The converse of this is that an economically attractive technology does not automatically get adopted the moment it becomes economical to use it.

Stylised Fact No. 6

TitleStylised Fact No. 7The technology for diffusion is not constant but steadily improves. This affects technology diffusion.

Stylised Fact No. 8Expensive and complex technologies tend to diffuse more slowly.

Stylised Fact No. 9The population of potential adopters changes over time

Types of Models

• Threshold Model

• Critical Threshold = NPV

• Endogenous & Exogenous nature of variables

• Complementary innovations

Conclusions

• Soft Innovations

• Age structure of plants

• Payback Periods & Sunk Costs

• Regulatory Pressure

Analysis of Report

Pros ConsNew Methods proposedCopious reference points / Loose ConnectorsEconometric methods proposed for diffusion analysis / more rigorous

References for Graphs within document do not check outReads like a funding advertisment at times Lack of drill down reporting / ambiguous figures

Title

Questions