Legislation-induced bubble markets: Driving forces of air pollution control technology in the field of waste incineration

Abstract

Only recently has discussion started about the process whereby markets come into existence. Environmental problems are being increasingly addressed, which in turn creates new environmental markets. The concept of the market is presented in the perspective of microeconomic theory, industrial organization, and the life cycle concept. It is suggested that in these theories the existence of markets is taken for granted and is not questioned. On the basis of an exploratory field study it is argued here that in some areas environmental legislation is the major driving force behind the emergence of markets and the concept of legislation-induced bubble markets is introduced. The main contribution of this article is to indicate a new research area, namely the creation of markets.