Evolutionary economic theory offers useful tools for long term policy assessment. Short term optimalization is in this approach replaced by concepts such as path dependency, diversity, bounded rationality and innovation. Projects have run on further conceptualization as well as on exploring opportunities for evolutionary economic modelling for the environment.

Technological Forecasting and Social Change: special issue on Evolutionary Modelling and Environmental Policy


edited by Albert Faber (Netherlands Environmental Assessment Agency) and Koen Frenken (Utrecht University)

August 2008

Now available as corrected proofs-in-press this double-sized special issue, which provides an overview of evolutionary approaches to environmental innovation, with a focus on formal modeling. We distinguish three parts in this issue:

1. Methodological discussions on evolutionary environmental economics,

2. Evolutionary economic models and environmental policy,

3. Empirical approaches on innovation systems.

The editors present evolutionary economics as a systematic analytical framework for environmental innovation, providing policymakers with an alternative perspective on environmental policy, emphasizing issues like the dynamic welfare effects of policy, the dangers of technological lock-in, co-evolutionary perspectives on technical change, consumer preferences and long-term transition policy. Both the modeling and the empirical contributions in this special issue reflect the versatility of an evolutionary approach in addressing social, economic and political mechanisms that apply in the specific setting of an environmental problem.

All articles are available through Science Direct (provided you have personal or institutional access). Then click 'Articles in press' and search for the titles above. These papers will be available in hardcopy by early 2009. This special issue collects the following papers, presented by a number of leading scholars on evolutionary economics and environmental innovation:

K. Frenken, A. Faber - Introduction: Evolutionary methodologies for analyzing environmental innovations and the implications for environmental policy

B. Verspagen - The use of modeling tools for policy in evolutionary environments

A. Faber, K. Frenken - Models in evolutionary economics and environmental policy: Towards an evolutionary environmental economics

E. Brouillat - An evolutionary model of recycling and product lifetime extension

S. Cantono, G. Silverberg - A percolation model of eco-innovation diffusion: The relationship between diffusion, learning economies and subsidies

N. Schwarz, A. Ernst - Agent-based modeling of the diffusion of environmental innovations — An empirical approach

M. Bleda, M. Valente - Graded eco-labels: A demand-oriented approach to reduce pollution

F. Boschetti, M. Brede - An information-based adaptive strategy for resource exploitation in competitive scenarios

P. Windrum, T. Ciarli, C. Birchenhall - Consumer heterogeneity and the development of environmentallyfriendly technologies

P. Windrum, T. Ciarli, C. Birchenhall - Environmental impact, quality, and price: Consumer trade-offs and the development of environmentally friendly technologies

V. Oltra, M. Saint Jean - Sectoral systems of environmental innovation: An application to the French automotive industry

M.P. Hekkert, S.O. Negro - Functions of innovation systems as a framework to understand sustainable technological change: Empirical evidence for earlier claims

Managing the transition to renewable energy

April 2008

In August 2005 the authors of Survival of the Greenest organized a workshop on ‘The transition to renewable energy’ at the 45th Congress of the European Regional Science Association (ERSA) (23-27 August 2005, Amsterdam). The proceedings of this workshop have been published with Edward Elgar publishers in a book edited by Jeroen van den Bergh and Frank Bruinsma of VU Amsterdam.

The book contains a chapter on the theoretical issues put forward in Survival of the Greenest, as well as a chapter elaborating the evolutionary evaluation of barriers and opportunities in Dutch environmental energy policy. The book is available through the Edward Elgar website.

Environmental policy and evolutionary economic modelling


EMAEE Conference, Manchester (May 2007)

The Netherlands Environmental Assessment Agency served as a co-sponsor for the EMAEE Conference in Manchester, May 2007. This conference focuses on innovation and dynamics of the knowledge economy. MNP endorsed the organisation of three special sessions on environmental policy, aimed to link environmental policy issues with the evolutionary economic approach, including modelling tools. Altogether nine papers were presented on a variety of environmental issues. These papers are now available here as well as through the EMAEE website. 

papers presented	paper	presentation
Eric Brouillat -  An evolutionary model of recycling and product-life extension	pdf	ppt
David Hoffman - Simulating the impact of the new EU chemicals regulation (REACH) on the innovativeness of the European chemical industry	pdf	ppt
Mercedes Bleda and Marco Valente - Graded Eco-Labels: a demand-oriented approach to reduce pollution	pdf	ppt
Nina Schwarz - Agent-based modelling of the diffusion of environmental innovations - an empirical approach	pdf	ppt
Simona Negro - Dynamics of technological innovation systems - the case of biomass energy	pdf	ppt
Totti Könnölä, Pablo del Río, Javier Carrillo-Hermosilla & Gregory Unruh - Institutional barriers to European hydrogen RD&D cooperation	pdf	ppt
Vanessa Oltra and Maïder Saint Jean - Incrementalism of environmental innovations versus paradigmatic change: a comparative study of the automotive and chemical industries	pdf	ppt
Joëlle Noailly - Coevolution of economic and ecological systems: an application to agricultural pesticide resistance	pdf	pdf
Paul Windrum & Chris Birchenhall - Modelling the conditions for environmentally friendly technologies	pdf	ppt

 

Edward Elgar publishes "Evolutionary Economics and Environmental Policy, Survival of the Greenest"


April 2007

In April 2007 Edward Elgar published 'Evolutionary Econmics and Environmental Policy. Survival of the Greenest', authored by Jeroen van den Bergh (VU Amsterdam), Albert Faber (MNP), Annemarth Idenburg (DHV) and Frans Oosterhuis (VU Amsterdam). It can be ordered through the publishers website.

Environmental policy and evolutionary economic modelling


Workshop Amsterdam (May 2006)

On 18 May 2006 the Netherlands Environmental Assessment Agency organized a workshop in Amsterdam on ‘Environmental policy and modelling in evolutionary economics’, in co-operation with Utrecht University and DHV Consulting. Here a group of experts discussed the opportunities and impediments for the development of evolutionary modelling tools for environmental policy research. Evolutionary economic modelling tools are useful to assess ex ante environmental innovation policy and sustainability transitions, since they generally allow for bottom-up emergence of system changes. Models based on evolutionary-economic principles may be either comprehensive (generic) or specific, the latter allowing for a focus on a specific technology, mechanism or population of agents. Five papers were presented at the workshop, each taking a unique perspective on the topic, in line with the classification made. The essays presented are all available here. All papers are now published in an MNP-report entitled 'Environmental policy and modelling in evolutionary economics' (report no. 550033001), edited by Albert Faber (MNP), Koen Frenken (Univ. Utrecht) and Annemarth Idenburg (DHV). 

Bart Verspagen (ECIS, TU Eindhoven) shows a comprehensive overview on evolutionary economic modelling. He follows a focus on a specific technology, with the study of micro co-generation technologies.

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Paul Windrum (UNU-MERIT, University of Maastricht, and Centre for International Business and Innovation (CIBI), Manchester Metropolitan University Business School) provides an overview of elements that could be included in a co-evolutionary framework that captures the dynamics of technological successions. The essay suggests conceptual building blocks for a comprehensive evolutionary model of technological transitions.

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Maïder Saint-Jean (IFREDE, Bordeaux IV University) aims at examining the impacts of particular policy options on clean trajectories by firms in an industry, using an evolutionary model of industrial dynamics 

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Wander Jager (Rijksuniversiteit Groningen) discusses the behaviour of consumers as one of the relevant actors in the economy, adopting the approach of multi-agent simulation. Jager develops a perspective on how behaviour could be formalized in environmental models, including opportunities for testing policy measures in complex man-environment systems. 

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Malte Schwoon (Hamburg University) adopts a modular approach in his study on the technological system of fuel cells. His model involves different types of agents and deals with crucial infrastructure issues. The model is based on agent-based simulations, studying the impacts of various policy measures.

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An overview paper has been written by Koen Frenken (Utrecht University), Annemarth Idenburg (DHV) and Albert Faber (MNP). The paper aims to formulate an advice on how to use evolutionary economic modelling for environmental research and policy.

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A reflection on the opportunities for the use of evolutionary economic modelling for the study of environmental policy was presented by Jeroen van den Bergh (VU Amsterdam). He also gives a review on the papers by Windrum, Saint-Jean and Jager.

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Survival of the Greenest

In 2005 the Netherlands Environmental Assessment Agency (MNP) published the report Survival of the Greenest, evolutionary economics as an inspiration for energy and transition policies (Van den Bergh et al., 2005). This report resulted from a joined research project with the Free University Amsterdam. The objective of this study was to investigate what insights evolutionary economics theory can provide for the design of environmental policy that aims to stimulate innovations and a transition to a long term environmentally sustainable economy. The report offers an overview of the main literature on evolutionary economics and derives some core concepts from this theory. These concepts were subsequently used tot assess and understand processes of change in economic structure, technological development and institutions, as well as to formulate guidelines for the role of government and the design of public policies.

Project proceedings

> report  (in Dutch): Survival of the greenest, evolutionaire economie als inspiratie voor energie- en transitiebeleid. RIVM report nr. 550006002.

> conference paper: Survival of the Greenest, evolutionary economics and policies for energy innovation. Presented at 6th International Conference of the European Society for Ecological Economics (ESEE), Lisbon, June 2005.

> article: Environmental Science 3 (1): pp. 57-71

> In April 2007 Edward Elgar has published an edited and extended English version of the report, entitled 'Evolutionary Econmics and Environmental Policy. Survival of the Greenest'. It can be ordered through the publishers website.

> a summary article in Dutch is published in TPE Digitaal