Supply and demand factors of Cleaner technologies: Some empirical evidence

This article identifies and analyzes factors that affect the willingness of firms and consumers to develop and adopt cleaner technologies. "Cleaner technologies" is used as a general term for pollution abatement technologies, re-use systems, and environmentally sound consumer products and materials. The article also contains the findings of three case studies on cleaner technologies (CFC substitutes, low-solvent paints and coatings, and membrane technology), in which the importance of the identified factors is investigated. From the case studies some general conclusions are drawn about these factors, and the way in which policy instruments can be used to stimulate innovation in and diffusion of cleaner technologies. No single policy instrument is considered to be optimal. Instead a policy mix is needed, involving a much wider use of economic instruments.