From End-of-Pipe Technology to Clean Technology

The intensive industrial development, while producing numerous useful products, has been increasingly interfering with the limited capacities of ecosystems. Various environmental policies have been introduced to reduce emissions. While there is a serious concern about negative impacts of tightened regulations on industry, they could actually enhance industrial competitiveness by encouraging innovation in the long run. This book sheds a fresh light on this debate by closely examining the interaction between environmental policy and technological change in the chlor-alkali industry in Japan and Europe. Weak regulations promote end-of-pipe technological solutions, which would function to prolong the life of existing, often obsolescent, production processes. Excessively stringent regulations, in contrast, while forcing clean technological options, could induce premature decisions on inferior technologies. Institutional designs for public-private collaboration will be important in fostering innovation for the best clean technologies. The analysis should be useful to corporate managers and policy makers for strategic decision makings in a transition towards a sustainable society.