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Linkages Between Environmental Policy and Competitiveness

Linkages Between Environmental Policy and Competitiveness

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Published by: Daniel Temoteo Martins Coelho on Jun 15, 2010
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10/27/2011

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Unclassified ENV/EPOC/GSP(2008)14/FINAL
 
Organisation de Coopération et de Développement Économiques
 
Organisation for Economic Co-operation and Development
 
13-Aug-2009
 ___________________________________________________________________________________________ 
English - Or. English
ENVIRONMENT DIRECTORATE
ENVIRONMENT POLICY COMMITTEE
Working Party on Global and Structural Policies
LINKAGES BETWEEN ENVIRONMENTAL POLICY AND COMPETITIVENESSJT03268619
Document complet disponible sur OLIS dans son format d'origineComplete document available on OLIS in its original format
E N V /  E O C /   G S  (   0  0  8  )   /  I   NAL Un c l   a s  s i  f  i   e  d 
En gl  i   s - O .En gl  i   s 
 
 
ENV/EPOC/GSP(2008)14/FINAL2
FOREWORD
One of the challenges environment ministries face is to make globalisation and environment performance compatible and mutually supportive. The issue of the potential impact of environmental policies on competitiveness comes to the forefront of the political agenda, as is illustrated by thedebates linked with the REACH Directive in Europe or with the negotiations of a post-Kyotoframework to mitigate climate change.The OECD Programme of work on Environment includes work to better design environmental policies so as to achieve environmental policy objectives effectively and efficiently while minimisingany potential impacts on competitiveness and, where possible, boosting it.This paper was developed in the context of the 2008 meeting of the OECD Environment PolicyCommittee at Ministerial level. Its objective is to cover recent conceptual developments on theenvironmental policy - competitiveness linkages as well as to review empirical research literature. The paper revisits a stock-taking study of the topic carried out by the OECD in 1997
1
. It proposes policyconclusions addressed to governments.The paper was developed by Dr. Leena Lankoski, University of Helsinki, Department of Economics and Management. Earlier drafts have been reviewed by the OECD Working Party onGlobal and Structural Policies.
Copyright OECD, 2009.Application for permission to reproduce or translate all or part of this material should beaddressed to the Head of Publications Service, OECD, 2 rue André Pascal, 75775 Paris Cedex16, France.
1
Adams, J. 1997. Environmental policy and competitiveness in a globalised economy: Conceptual issues and areview of the empirical evidence. In:
Globalisation and environment: Preliminary perspectives
. Paris: OECD.
 
ENV/EPOC/GSP(2008)14/FINAL3 
TABLE OF CONTENTS
FOREWORD ................................................................................................................................. 2
 
EXECUTIVE SUMMARY ........................................................................................................... 4
 
Key findings ............................................................................................................................... 4
 
Lessons learnt ............................................................................................................................. 6
 
Conclusions for further work ..................................................................................................... 7
 
INTRODUCTION ......................................................................................................................... 9
 
ANALYTICAL FRAMEWORK................................................................................................... 9
 
Environmental policy - environmental performance - competitiveness triangle at the firm level 12
 
Competitiveness at sectoral and national levels ....................................................................... 18
 
Globalisation context ............................................................................................................... 19
 
REVIEW OF RECENT EMPIRICAL STUDIES ....................................................................... 21
 
Studies connecting environmental performance and competitiveness ..................................... 21
 
Studies connecting environmental policy and competitiveness ............................................... 23
 
Forecasts and simulations of competitiveness impacts of environmental policies .................. 27
 
Discussion of recent empirical research ................................................................................... 29
 
REVIEW OF PROS AND CONS OF MEASURES PROPOSED TO ADDRESS ADVERSECOMPETITIVENESS IMPACTS OF ENVIRONMENTAL POLICY...................................... 32
 
Types of measures .................................................................................................................... 32
 
Assessment criteria .................................................................................................................. 33
 
Review of pros and cons .......................................................................................................... 34
 
LESSONS LEARNT AND WAYS FORWARD ........................................................................ 39
 
REFERENCES ............................................................................................................................ 42
 
Figures
Figure 1. Analytical framework on the linkages between environmental policy and competitivenessexamined in the study. ............................................................................................................. 10
 
Figure 2. Mechanisms from firm-level environmental performance to firm-level economic performance. ............................................................................................................................ 12
 
Figure 3. Direct mechanisms from environmental policy to firm-level economic performance.15
 
Figure 4. The build-up of national competitiveness (see Porter et al., 2007) .......................... 18
 

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