Why Do We Hesitate to Take Action Toward Implementation of Sustainable Technology

This paper presents a system dynamics model which shows that there seem to be rational reasons for hesitation to invest in resource-saving projects. In contrast to classical marketing approaches dealing with decreasing resource and product prices a new kind of follower advantages in a market of increasing resource prices may constitute a waiting game which in turn can significantly delay the deployment of sustainable technologies. This new kind of follower advantages and the related hesitation to introduce a potential resource-saving new technology may be significant when anticipating the market diffusion of such a technology or designing policy to foster green economy. A price shock of resources, as shown by model simulations, might be a possible way to switch back from such a waiting game to a preemption game.