Natural resources and technology - on the mitigating effect of green tech

Abstract

This paper deals with the question as to whether technology can lessen the problem of scarce resources. Focusing on fossil and biomass materials as important resources for production and consumption, the paper empirically investigates whether environmental innovations reduce the material usage in European economies. A dynamic panel model is employed to estimate the effect of environmental innovations on the use of fossil and biomass materials. It shows that there is no continuously mitigating effect of green technology. For biomass, no significant technology effects are found. Fossil materials are saved by innovations in recycling as well as by new production and processing technologies, but not by all categories of relevant green technology.