Abstract
AbstractEuropean governments offer various forms of financial assistance to support small and medium‐sized enterprises (SMEs) in aspects of environmental improvement. Such subsidies can be controversial, but it is generally accepted that economic instruments must be used in working towards environmental policy goals.Through a comparative analysis, this article reviews 15 environmental incentives for SMEs in the Nordic countries of Denmark, Finland, Norway and Sweden. Four broad themes identified in incentive coverage comprise environmental management, environmental technology, environmental employment and energy. The associated objectives range from launching research and development through to implementing environmental technology, raising awareness and skills, creating jobs and competing in the specialist environmental sector. In comparison with Europe‐wide survey data, the Nordic countries have recently used a greater proportion of grants.Issues of research significance include the lack of clarity regarding company perception of environmental incentives, the impact of incentives on SME environmental performance and whether these subsidies ultimately contribute to economic competitiveness. Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment.
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