Polluting emissions standards and clean technology trajectories under competitive selection and supply chain pressure

Based on an evolutionary model of industrial dynamics, this paper examines the impact of polluting emissions standards on trajectories of clean technologies implemented by firms subject to competitive selection and supply chain pressure. The paper gives guidance to the conditions of dynamic efficiency of emissions standards taking into account the coevolution of technology, user requirements and market structure. Computer simulations will show that the efficiency of standards depends on the nature of performance standards (process or product), on the market structure and on the timing of intervention.