Methodological and Technological Issues in Technology Transfer

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7.6.1 Business and Industry

Within Countries
While government decisions create an enabling environment for environmentally sound investments, the bulk of investment funds are coming increasingly from the private sector (See Chapter 2). The developing countries are expected to be the largest markets for energy efficiency products in the 21st Century, driven by a growth in population, economic activity, and energy demand that far outstrips that of industrialised countries. For example, the developing countries' current rate of growth in annual energy demand is more than double that of the OECD countries, 3.7 per cent versus 1.7 per cent (IIEC, 1996). To respond to this trend in ways that minimise economic, environmental, and social costs will create an attractive opportunity for new, environmentally sound products and services. While these changes are often characterised as opportunities for international exports, they also invite the growth of domestic production and joint ventures. To grasp these opportunities, participating governments could remove any artificial trade, regulatory, taxation, or commercial barriers that hinder the diffusion of advanced technologies (World Energy Council, 1998).

Among Countries
The largest market for ESTs in the 21st Century will be in the developing countries and CEITs. This will offer an opportunity for the domestic industries of these countries. It also will also be an export opportunity for international industries. A 1995 study by Hagler Bailly Consulting, Inc. estimates the annual international market for energy efficiency will rise from about US$40 billion currently to US$125 billion in 2015 (Hagler Bailly, 1995). A recent assessment of the export market identified building technologies among the major items, including building environment controls; heating, ventilation and air conditioning equipment; lighting; household appliances; and building materials (IIEC, 1996). International strategies can capitalise on this demand by identifying the international corporations that are targeting this market and by encouraging them in the rapid deployment of the best ESTs.

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