Keywords: energy use, environmental policies, technology adoption
The adoption and diffusion of environmentally friendly technologies among firms
This paper discusses the adoption and diffusion of environmentally friendly technologies among firms from a micro-economics perspective. First, some theoretical backgrounds are given on issues like the process of the development and adoption of environmentally friendly innovations, the adoption of new technology in a market equilibrium, and general market failures which influence the working of the market in a situation of market equilibrium. Next, we discuss possible policy instruments to stimulate the adoption process. Finally, we provide some empirical evidence on investments in environmentally friendly technology, based on a recent survey held in The Netherlands.