Identifying the sources of green innovation: markets or regulations?

Filling the gap between market-based instalments and legislative regulations, signs of voluntary actions are emerging in industry. In search of the sustainability of capitalism, this "environmental enlightenment" needs to be supported by appropriate policy schemes. Given the uncertainty and diversity inherent in technological change, the mode of information flow exchange, and sharing between government and industry which is embedded in the peculiar institutional framework of each country, is particularly important in encouraging green innovation.