New technologies are crucial to dealing with enviornmental problems. Even when cleaner technologies are available, individuals, business and organizations may be slow to adopt them.
This project examines the factors that lead small businesses to adopt a specific new kind of 'green' technology. The study focuses on the dry cleaning industry in several U.S. states. Dry cleaners can choose to adopt new 'green' cleaning methods. These methods require purchasing expensive new equipment, and business owners may be uncertain whether their customers value 'green' cleaning, or whether the results of the 'green' process is good enough to satisfy their consumers. A formal structural econometric model is estimated with the data to determine whether competition between cleaners encourages firms to adopt the technology. The resulting model of the entire cleaning industry allows us to evaluate the driving forces behind the adoption of new green technology in this industry.
The results of this project allow us to predict the likely effect of government incentives designed to encourage firms to adopt the new technology. This part of the project is a direct broader impact that will guide policymakers and may benefit citizens by improving the environment.
