Towards a Competitive Low-Carbon Economy: On Firms’
Incentives and the Role of Public Research
Abstract
This paper considers the prerequisites for implementing a competitive low-carbon
economy in the European Union from the point of view of firms’ incentives, the role of
policy and the contribution of public research. It suggests that the reduction of the
environmental impact of energy can be a new competitiveness factor. Rather than
being treated as a constraint and cost-aggravating factor, addressing climate change
can offer economic opportunity and contribute to growth. The paper looks at both
static (energy efficiency) and dynamic (innovation – new products, processes,
technologies or sectors and consumption patterns) dimensions of competitiveness.


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