IE WP 20/03 An Evolutionary Approach to the Process of Technology Diffusion and Standardization

The study described here aims to make a threefold contribution to the analysis of technology diffusion. First of all, it tries to offer a new approach to the study of the dynamic of innovation diffusion, not from the traditional perspective of the rate at which one new technology is fully adopted, but the extent of the diffusion of several technologies and the related phenomenon of standardization. Secondly, it aims to show a broadened and evolutionary view of the process of technology standardization, avoiding the habitual determinism of conventional models of technology diffusion and lock-in. Finally, it tries to identify and evaluate the relationships existing between the main characteristics of industries and the attributes of the technology standardization processes in them. To achieve these goals we have developed an agent based model (ABM), using distributed artificial intelligence (DAI) concepts drawn from the general methodology of social simulation.Technology diffusion; standardization; lock-in; evolutionary models; agent-based models

IE WP 02/04 Technology and the environment: an evolutionary approach to sustainable technological change

Can the individual actions of agents spontaneously move the system out of a state where it is locked into an environmentally inferior technology, or is coordination from outside the system necessary in the form of public intervention? More importantly, even if the system were able to make the transition unaided, could market coordination mechanisms play an important role? The results of our model show that it would be advisable to undertake policies expressly aimed at the process of sustainable technological change –applying an ex ante (precautionary) approach– in a way that is complementary to the conventional equilibrium oriented environmental policies. The nature of these policies and how they might be implemented are questions we will address from this novel approach to the concept of sustainable development. In short, the main objectives of this paper are to understand more fully the dynamics of the process of technological change, its role in sustainable development, and to assess the implications of this dynamic approach to techno-environmental policy. To achieve these goals we have developed an agent based model (ABM), using distributed artificial intelligence (DAI) concepts drawn from the general methodology of social simulation.Technology diffusion; standardization; lock-in; sustainability; precautionary approach; evolutionary models; agent-based models

IE WP 01/03 Technology transfer and sustainable development in emerging economies

This paper aims to show how the process of diffusion of 'clean technologies' confronts a variety of forces at the macro level that create systematic, technological and institutional barriers to their adoption. There is abundant literature on the role of technology transfer in the development of emerging economies, but this perspective is clearly new. What needs to be borne in mind is the possibility that the transferred dominant technology may be subject to a techno- institutional lock-in at its source that does not allow the diffusion of environmentally superior alternative technologies.Developing economies; sustainable development; technology transfer; techno-institutional lock-in

IE WP 23/04 Prospective Voluntary Agreements to Escape Carbon Lock-in

The paper looks for co-evolutionary policy responses to carbon lock-in – a persistent state that creates systemic market and policy barriers to carbon low technological alternatives. We address the coordination role for authorities rather than the corrective optimisation and analyse experiences from environmental voluntary agreements and foresight activities. The paper argues that combining the virtues of these tools into a new policy tool, named Prospective Voluntary Agreement (PVA), can help facilitate an escape from carbon lock-in and provide policy resources for addressing lock-in related issues. The merit of PVA lies with the enhancement of collaborative policy culture and inter-sectoral and interdisciplinary stakeholder learning that creates commitment to desired action for escaping lock-in.environmental voluntary agreement; foresight; increasing returns; lock-in; path-dependence

The competitive environment of the European electricity sector in the post-Kyoto scenarios

This paper shows how the uncertainty associated to the absence of a post-Kyoto regime regarding Greenhouse Gas mitigation is affecting investments in mitigation activities in the EU electricity sector and, thus, future emissions levels. Based on a wide survey of EU power companies, the paper identifies the most likely post-Kyoto scenarios considered by these firms and how they are coping with such uncertainty in their current investment decisions. The major conclusion is that the non-existence of a post-Kyoto regime is having a negative effect on current business investment decisions in mitigation activities, increasing risk premiums and financing costs. All in all, the companies surveyed foresee post-Kyoto compliance regimes with emissions trading systems that would guarantee the continuity of the value of the reductions made beforehand, although they differ in their perceptions of the form that a post-Kyoto regime could take.Post-Kyoto scenarios; EU electricity sector; investment decisions

Building a taxonomy of eco-innovation types in firms: A quantitative perspective

Eco-innovations, or innovations that reduce the environmental impacts of production and consumption activities, are considered crucial for sustainability transitions and a key element of a Circular Economy. Although previous contributions have acknowledged the existence of different types of eco-innovations (e.g., product vs. service or incremental vs. radical), a precise conceptualization of eco-innovation types, which takes into account its multifaceted character, is missing. Yet such a conceptualization is crucial in order to understand how eco-innovations contribute to a sustainable transition, how policy makers can promote different eco-innovation types, and how business practitioners can develop eco-innovations. This article covers this gap in the literature. Its aim is twofold: 1) to develop a quantitative method to categorise different eco-innovation types in a particular setting, taking into account their distinct features and dimensions; 2) to apply this method in a given sector and country, building a taxonomy of eco-innovation types. It draws on a survey of 197 Spanish industrial small and medium size enterprises (SMEs) which developed or adopted an eco-innovation between 2012 and 2013. The statistical analyses reveal the existence of a taxonomy of five eco-innovation types: systemic, externally driven, continuous improvement, radical (technology-push initiated) and eco-efficient. They differ in their techno-economic configurations, contribution to environmental sustainability and corporate goals and required changes in the firms. Specific policy and managerial implications are deducted

Drivers and barriers of eco-innovation types for sustainable transitions: A quantitative perspective

Firms are influenced by internal factors (resources and capabilities) and external factors (e.g., regulation) when taking the decision to eco-innovate. However, the analysis of the internal factors has received much less attention than the external ones. This paper aims to fill this gap in the literature by analyzing the role of resources, competences, and dynamic capabilities (RCCs) as determinants (drivers and barriers) of different eco-innovation (EI) types. Those EI types contribute differently to the sustainable transition of the economy and society, that is, towards the circular economy. The statistical analyses reveal that RCCs are quite relevant as determinants of EIs, and that different RCCs are more or less relevant for different EI types. In particular, the determinants of systemic and radical EIs substantially differ from those for continuous improvements. Our results suggest that physical RCCs, involvement in green supply chains, an EI-friendly corporate culture, technology-push and market-pull, and internal financing resources represent drivers to these EIs, whereas cooperation, organizational learning, an ISO (International Organization for Standardization) ecological certification, and technological path dependency are barriers. The results may guide firms to pursue competitive and sustainable advantage by innovating through certain EI types corresponding to available and dedicated RCCs. They may also be useful to policy makers who are willing to promote specific EI types

The competitive environment of the European electricity sector in the post-Kyoto scenarios

This paper shows how the uncertainty associated to the absence of a post-Kyoto regime regarding Greenhouse Gas mitigation is affecting investments in mitigation activities in the EU electricity sector and, thus, future emissions levels. Based on a wide survey of EU power companies, the paper identifies the most likely post-Kyoto scenarios considered by these firms and how they are coping with such uncertainty in their current investment decisions. The major conclusion is that the non-existence of a post-Kyoto regime is having a negative effect on current business investment decisions in mitigation activities, increasing risk premiums and financing costs. All in all, the companies surveyed foresee post-Kyoto compliance regimes with emissions trading systems that would guarantee the continuity of the value of the reductions made beforehand, although they differ in their perceptions of the form that a post-Kyoto regime could take

The competitive environment of the European electricity sector in the post-Kyoto scenarios

This paper shows how the uncertainty associated to the absence of a post-Kyoto regime regarding Greenhouse Gas mitigation is affecting investments in mitigation activities in the EU electricity sector and, thus, future emissions levels. Based on a wide survey of EU power companies, the paper identifies the most likely post-Kyoto scenarios considered by these firms and how they are coping with such uncertainty in their current investment decisions. The major conclusion is that the non-existence of a post-Kyoto regime is having a negative effect on current business investment decisions in mitigation activities, increasing risk premiums and financing costs. All in all, the companies surveyed foresee post-Kyoto compliance regimes with emissions trading systems that would guarantee the continuity of the value of the reductions made beforehand, although they differ in their perceptions of the form that a post-Kyoto regime could take

Inventory and Analysis of Environmental Sustainability Education in the Degrees of the University of Alcalá (Spain)

In order to promote education in environmental sustainability at higher education institutions and establish action priorities, a detailed analysis of the initial situation is needed, both in terms of courses offered and teaching and assessment strategies implemented. This article presents a methodology that can be used to standardize the evaluation of teaching in environmental sustainability at different universities. We exemplify its application at the University of Alcalá, located in Central Spain. The inventory was conducted using in-house software development for the extraction of environmental sustainability concepts in the degree courses? syllabi, completed with a survey to faculty members and a manual review to confirm its adjustment to environmental issues. Those finally selected were analyzed in depth. The main results indicate that currently, only a small part of the courses (5.5%) offered at the University explicitly include environmental sustainability content. The grades that concentrate most of the courses are those of Environmental Sciences, Biology, Economics, Tourism and Pharmacy, with very low occurrence in the grades of Education and Health Sciences. It is concluded that further institutional commitment is needed in the definition of medium-term strategies to guide the training and dissemination efforts in order to promote sound environmental education in university courses