Connecting innovation and policy to reduce to carbon emissions from manufacturing

Abstract

Drawing on qualitative case study data from Scottish distilleries and from UK cement production, this paper explores firmand sector-level responses to the net zero carbon emissions challenge, demonstrating the difference between two pathways: (1) improving existing technologies and processes, and (2) developing and adopting new technologies. For each pathway, our data shows that a distinctive mix of policy and regulation needs to be in place to achieve the desired transition. This holds true across both of our energy-intensive manufacturing cases.: whisky distillation and cement manufacture. For Pathway 1, innovation is passive in relation to policy; i.e. the pursuit of optimisation means that innovations respond to incentives (or disincentives) but do not create the conditions for policy success. For pathway 2, innovation and policy feed off each other in a more dynamic relationship; pushing each other and establishing conditions that support transformative practices and technology-process development. Effective policy mixes must also reflect aspects of place that affect the firm, whether cultural, resource factors, social norms, or governance and political arrangements.