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Climate policy uncertainty and green innovation

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  • Huang, Wendi

Abstract

This study examines the impact of climate policy uncertainty on green patenting activities among U.S. firms during the period from 1987 to 2019. The results indicate that climate policy uncertainty is negatively associated with firms’ green patenting activities. The results are robust to controlling for economic policy uncertainty. Overall, the results suggest that climate policy uncertainty delays investments for the low-carbon economy.

Suggested Citation

  • Huang, Wendi, 2023. "Climate policy uncertainty and green innovation," Economics Letters, Elsevier, vol. 233(C).
    • Handle: RePEc:eee:ecolet:v:233:y:2023:i:c:s0165176523004494
    DOI: 10.1016/j.econlet.2023.111423
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    References listed on IDEAS

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    1. Joelle Noailly & Laura Nowzohour & Matthias van den Heuvel, 2022. "Does Environmental Policy Uncertainty Hinder Investments Towards a Low-Carbon Economy?," NBER Working Papers 30361, National Bureau of Economic Research, Inc.
    2. Lauren Cohen & Umit G. Gurun & Quoc H. Nguyen, 2020. "The ESG-Innovation Disconnect: Evidence from Green Patenting," NBER Working Papers 27990, National Bureau of Economic Research, Inc.
    3. Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2016. "Measuring Economic Policy Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1593-1636.
    4. Ivan Haščič & Mauro Migotto, 2015. "Measuring environmental innovation using patent data," OECD Environment Working Papers 89, OECD Publishing.
    5. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    6. Lawrence H. Goulder, 2020. "Timing Is Everything: How Economists Can Better Address the Urgency of Stronger Climate Policy," Review of Environmental Economics and Policy, University of Chicago Press, vol. 14(1), pages 143-156.
    7. Stoffman, Noah & Woeppel, Michael & Yavuz, M. Deniz, 2022. "Small innovators: No risk, No return," Journal of Accounting and Economics, Elsevier, vol. 74(1).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Climate policy uncertainty; Green patenting; Low-carbon economy JEL;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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