The Nokia Case

The Nokia Case
Environmental and Resource Economics | Dr. Dennis Häckl Benedikt Müller | Raphael Petri | Nicola Rabba | Mirjam Rössler | Friedemann Seith Leipzig, 6th February 2013

Agenda

Content

A

Introduction

3

4
B Nokia Case

4

C

Conclusion

Environmental and Resource Economics | Winter Term 2013 | Group 1

2

Agenda

Content

A

Introduction

4
B Nokia Case

4

C

Conclusion

Environmental and Resource Economics | Winter Term 2013 | Group 1

3

A Introduction

Governments can mainly use two policy instruments to INFLUENCE industries and firms
Instruments of environmental policy

Command and control policies
EXPLICIT STATEMENT OF WHAT IS PERMITTED AND WHAT IS ILLEGAL (UNIFORM STANDARDS)  Lack of flexibility  Little or no incentive for businesses to innovate or to exceed control targets

Market orientated policies
REGULATIONS THAT ENCOURAGE BEHAVIOR THROUGH MARKET SIGNALS  Cost effectiveness  Dynamic incentives for technology innovation

1

2

 Input standards  Process standards  Output standards … implemented by laws

   

Pollution charges Tradable permits Market barrier reductions Government subsidy reductions

The instrument which is best in a particular situation depends on the characteristics of the problem and its social, political, and economic context. Today‘s focus lies on the development of environmental standards by the EU Commission (command and control policies)
Environmental and Resource Economics | Winter Term 2013 | Group 1 Source: Althammer (2013), Stavins (1998) 4

A Introduction

Companies have different possibilities of RESPONSE so as to react to external pressures
Forms of organizational responses

Distinction
ACQUIESCENCE Conscious intent to conform COMPROMISE Balancing, pacifying, and bargaining AVOIDANCE Concealing, buffering, and escaping SAFEGUARDING Protection of a regulatory pressure PRE-EMPTING Using two strategies concurrently

References: (2/2) Oliver, C. (1991) Strategic Responses to Institutional Processes. Academy of Management Review, Vol. 16, No. 1, pp. 145-79. Singhal, P. (2006) Integrated Product Policy Pilot on Mobile Phones. (available at http://ec.europa.eu/environment/ipp/pdf/final_report_mobile.pdf), [retrieved on 01/04/2013]. Stavins, R.N. (1998) Market-based Environmental Policies. Discussion Paper 98-26, Environment and Natural Resources Program. John F. Kennedy School of Government, Harvard University (available at http://www.rff.org/documents/RFF-DP-98-26.pdf), [retrieved on 02/04/2013]. Environmental and Resource Economics | Winter Term 2013 | Group 1 19