Environmental Engineering Reference
In-Depth Information
Chapter 3
Promoting Technological
Environmental Innovations:
What is the Role of
Environmental Regulation?
Jacqueline C. K. Lam
The University of Hong Kong, Hong Kong
Peter Hills
The University of Hong Kong, Hong Kong
ABSTRACT
This chapter reviews and discusses the debate over the effectiveness of environmental regulation in
promoting industrial Technological Environmental Innovation (TEI). Using the innovation-friendly
regulatory principles adapted from Porter and van der Linde (1995a and 1995b), this chapter demon-
strates how properly designed and implemented environmental regulation (TEI promoting regulation)
has played a critical role in promoting TEI in the transport industry in California and Hong Kong.
In both cases, it has been shown that stringent environmental regulations that send clear and strong
signals for future environmental performance requirements are critical in promoting TEIs in the public
transport industries. Unlike traditional command-and-control regulations, TEI promoting regulations
are strongly supported by incentive and capability-enhancing measures.
INTRODUCTION
both economic gains and improved environ-
mental performance in the greening of industry
literature (Porter and van der Linde, 1995a and
1995b; Gouldson and Murphy, 1998; Murphy
and Gouldson, 2000; Mol and Sonnenfeld, 2000;
Technological Environmental Innovation (TEI)
has been seen as a critical means to achieve
