Title: The role of the regulatory framework for innovation activities: the EU ETS and the German paper industry

Authors: Karoline S. Rogge, Joachim Schleich, Philipp Haussmann, Annette Roser, Felix Reitze

Addresses: Competence Center Energy Policy and Energy Systems, Fraunhofer Institute Systems and Innovation Research (ISI), Breslauer Str. 48, Karlsruhe 76139, Germany. ' Competence Center Energy Policy and Energy Systems, Fraunhofer Institute Systems and Innovation Research (ISI), Breslauer Str. 48, Karlsruhe 76139, Germany. ' Freinsheimerstrasse 30, Ludwigshafen 67067, Germany. ' Institute for Resource Efficiency and Energy Strategies (IREES), Schonfeldstrasse 8, Karlsruhe 76131, Germany. ' Institute for Resource Efficiency and Energy Strategies (IREES), Schonfeldstrasse 8, Karlsruhe 76131, Germany

Abstract: Based on a research framework, which combines environmental economics and innovation studies, we explore the relevance of the regulatory framework for innovation activities in the German paper industry, with a focus on climate policies. Innovation activities considered include research and development, adoption and organisational change. Empirically, we mainly rely on the survey data of paper producers and technology providers. Findings suggest that innovation activities are mainly governed by market factors and (as yet) are hardly affected by the European emission trading system and other climate policies. Also, the impact of these policies on innovation activities is lower for technology providers than for paper producers. However, the majority of companies expect the effects of the regulatory climate policy framework on innovation to increase by 2020.

Keywords: R&D; research and development; organisational change; climate policies; EU ETS; European Union; emissions trading system; paper industry; Germany; emissions trading scheme; environmental economics; innovation studies; innovation adoption; market factors; paper producers; regulation; regulatory frameworks; technology providers; management.

DOI: 10.1504/IJTPM.2011.042086

International Journal of Technology, Policy and Management, 2011 Vol.11 No.3/4, pp.250 - 273

Published online: 31 Mar 2015 *

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