ETR and the Environmental Industry

Martin Jänicke and Roland Zieschank

in Environmental Tax Reform (ETR)

Published in print April 2011 | ISBN: 9780199584505
Published online May 2011 | e-ISBN: 9780191725012 | DOI:

Series: Creating Sustainable Growth In Europe

ETR and the Environmental Industry

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In terms of functional analysis, the activity of environmental industries—especially regarding eco-efficient innovations—is a condition of sustainable growth. Fast-growing sectors also contribute directly to sustainable growth. Their rapid recent growth is underestimated due to statistical problems. The environmental industries are essentially policy-driven. By changing relative prices, ETR can direct innovation more towards the improvement of environmental performance, which will contribute to the growth and performance of environmental industries. The stimulation of innovation is one way that ETR can achieve its positive economic benefits. This chapter presents evidence about the evolution of environmental industries in Europe and their contribution to European economies. To assess the impact of environmental policy on economic success variables, four selected cases are presented: renewable energy, eco-construction, fuel-efficient diesel cars, and waste management/recycling.

Keywords: environmental industries; sustainable growth; ETR (or eco-tax reform); environmental policy; eco-efficiency; innovation; Germany; Europe; functional analysis

Chapter.  9491 words.  Illustrated.

Subjects: Macroeconomics and Monetary Economics

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