How environmental regulation can drive innovation: Lessons learned from a systematic review

Lauge Peter Westergaard Clausen*, Maria Bille Nielsen, Nikoline Bang Oturai, Kristian Syberg, Steffen Foss Hansen

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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Abstract

Regulation is often seen as a barrier to innovation. However, if done properly, it can actually serve as a driver of innovation. To understand how environmental regulation can be designed to stimulate innovation, we scrutinise the scientific literature related to regulation, innovation and the environment. Fifty one carefully selected studies are examined with regard to their scope, results and geographical affiliation, and their findings were distilled into ten lessons on how to design environmental regulation to stimulate innovation. Subsequently, we discuss the validity and implications of the lessons. We find that the lessons are overarching concepts of principal nature that are applicable for most regulatory settings. We also find that recent EU regulations on plastics, nanomaterials and waste support many of the lessons learned, while some are completely neglected. The lessons offer important guidance and can be seen as a checklist of what regulators must consider when designing new regulation.
Original languageEnglish
JournalEnvironmental Policy and Governance
Volume33
Issue number4
Pages (from-to)364-373
Number of pages10
ISSN1756-932X
DOIs
Publication statusPublished - 2023

Keywords

  • Environmental regulation
  • Innovation
  • Nano-specific REACH revisions
  • Porter hypothesis
  • Single-use plastic directive
  • Waste framework directive

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