IDEAS home Printed from https://ideas.repec.org/a/arv/journl/v2y2024i2p115-128.html
   My bibliography  Save this article

How Are Energy-Related R&D Investments Effective on Environment-Related Patents? Empirical Evidence from the USA and Canada

Author

Listed:
  • Dilvin TaÅŸkın
  • Serpil Kılıç Depren
  • Fatih Ayhan

Abstract

All related economic actors have been interested in combating climate change as consistent with developing interest in environmental issues. In this context, R&D investment funds can be highly beneficial in developing environmental patents, which may have a key role in solving environmental problems. Accordingly, the study analyzes the marginal effect of sub-types of R&D investments on environment-related patents by focusing on the USA and Canada as the leading R&D investing countries, using data between 1990 and 2021, and adopting a kernel-based regularized least squares (KRLS) model. The results show that on the patents (i) R&D investments in cross-cutting technologies/research, nuclear, and renewable have a stimulating effect in the USA; (ii) R&D investments in renewable support the increase in Canada; (iii) in both USA and Canada, R&D investments in fossil fuels have a decreasing effect, whereas R&D investments in energy efficiency have no significant effect; (iv) Among all, R&D investments in cross-cutting technologies/research (renewable) have the highest increasing effect on the patents in USA (Canada); (v) marginal effect of the sub-types of R&D investments on the patents varies across factors, countries, and percentiles; (vi) the KRLS model has a high prediction performance, reaching ~97.1%. Overall, the study emphasizes the average and pointwise marginal effects of R&D investments on the patents, which imply that R&D investments should be re-distributed by considering their effects on the patents so that a successful policy on environmental patents can be designed by benefitting energy-related R&D investments.

Suggested Citation

  • Dilvin TaÅŸkın & Serpil Kılıç Depren & Fatih Ayhan, 2024. "How Are Energy-Related R&D Investments Effective on Environment-Related Patents? Empirical Evidence from the USA and Canada," Journal of Sustainable Development Issues (JOSDI), SDIjournals, vol. 2(2), pages 115-128, December.
  • Handle: RePEc:arv:journl:v:2:y:2024:i:2:p:115-128
    DOI: 10.62433/josdi.v2i2.36
    as

    Download full text from publisher

    File URL: https://journalsdi.com/index.php/jsdi/article/view/36/15
    Download Restriction: no

    File URL: https://journalsdi.com/index.php/jsdi/article/view/36
    Download Restriction: no

    File URL: https://libkey.io/10.62433/josdi.v2i2.36?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Xiong, Su & Luo, Rong, 2023. "Investigating the relationship between digital trade, natural resources, energy transition, and green productivity: Moderating role of R&D investment," Resources Policy, Elsevier, vol. 86(PB).
    2. Albert N. Link & Cody A. Morris & Martijn van Hasselt, 2019. "The impact of public R&D investments on patenting activity: technology transfer at the U.S. Environmental Protection Agency," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(5), pages 536-546, July.
    3. Mounir Dahmani, 2024. "Environmental quality and sustainability: exploring the role of environmental taxes, environment-related technologies, and R&D expenditure," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 26(2), pages 449-477, April.
    4. Nick Johnstone & Ivan Haščič & Julie Poirier & Marion Hemar & Christian Michel, 2012. "Environmental policy stringency and technological innovation: evidence from survey data and patent counts," Applied Economics, Taylor & Francis Journals, vol. 44(17), pages 2157-2170, June.
    5. Hainmueller, Jens & Hazlett, Chad, 2014. "Kernel Regularized Least Squares: Reducing Misspecification Bias with a Flexible and Interpretable Machine Learning Approach," Political Analysis, Cambridge University Press, vol. 22(2), pages 143-168, April.
    6. Wang, Juxian & Ma, Mengdi & Dong, Tianyi & Zhang, Zheyuan, 2023. "Do ESG ratings promote corporate green innovation? A quasi-natural experiment based on SynTao Green Finance's ESG ratings," International Review of Financial Analysis, Elsevier, vol. 87(C).
    7. Zhou, Yacheng & Huo, Weidong & Bo, Lan & Chen, Xiaoxian, 2023. "Impact and mechanism analysis of ESG ratings on the efficiency of green technology innovation," Finance Research Letters, Elsevier, vol. 58(PD).
    8. Aiping Chen & Huiying Chen, 2021. "Decomposition Analysis of Green Technology Innovation from Green Patents in China," Mathematical Problems in Engineering, Hindawi, vol. 2021, pages 1-11, May.
    9. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gianluca Orsatti & François Perruchas & Davide Consoli & Francesco Quatraro, 2020. "Public Procurement, Local Labor Markets and Green Technological Change. Evidence from US Commuting Zones," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 711-739, April.
    2. Patricia Laurens & Christian Le Bas & Stéphane Lhuillery & Antoine Schoen, 2017. "The determinants of cleaner energy innovations of the world’s largest firms: the impact of firm learning and knowledge capital," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(4), pages 311-333, May.
    3. Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2021. "Firms’ growth, green gazelles and eco-innovation: evidence from a sample of European firms," Small Business Economics, Springer, vol. 56(4), pages 1721-1738, April.
    4. Golmohammadi, Amirmohsen & Kraft, Tim & Monemian, Seyedamin, 2024. "Setting the deadline and the penalty policy for a new environmental standard," European Journal of Operational Research, Elsevier, vol. 315(1), pages 88-101.
    5. Quatraro, Francesco & Scandura, Alessandra, 2019. "Academic Inventors and the Antecedents of Green Technologies. A Regional Analysis of Italian Patent Data," Ecological Economics, Elsevier, vol. 156(C), pages 247-263.
    6. Sanni, Maruf, 2018. "Drivers of eco-innovation in the manufacturing sector of Nigeria," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 303-314.
    7. Xu, Nianhang & Li, Min & Xie, Rongrong & Chan, Kam C., 2024. "Double standards? The adverse impact of chairperson hometown ties on corporate green innovation," Journal of Corporate Finance, Elsevier, vol. 88(C).
    8. Claudia Ghisetti & Francesco Quatraro, 2013. "Beyond the Inducement in Climate Change: Do Environmental Performances Spur Enrivornmental Technologies? A Regional Analysis of Cross-Sectoral Differences," Working Papers 2013112, University of Ferrara, Department of Economics.
    9. Nabila Arfaoui & Eric Brouillat & Maïder Saint Jean, 2015. "The Impact of REACH on Eco-Innovation: How Perception Misfits on Policy Stringency Matter," Working Papers hal-02147096, HAL.
    10. Cainelli, Giulio & D’Amato, Alessio & Mazzanti, Massimiliano, 2015. "Adoption of waste-reducing technology in manufacturing: Regional factors and policy issues," Resource and Energy Economics, Elsevier, vol. 39(C), pages 53-67.
    11. Massimiliano Mazzanti & Giovanni Marin & Susanna Mancinelli & Francesco Nicolli, 2015. "Carbon dioxide reducing environmental innovations, sector upstream/downstream integration and policy: evidence from the EU," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(4), pages 709-735, November.
    12. Orsatti, Gianluca & Quatraro, Francesco & Pezzoni, Michele, 2020. "The antecedents of green technologies: The role of team-level recombinant capabilities," Research Policy, Elsevier, vol. 49(3).
    13. repec:hal:wpaper:hal-00860045 is not listed on IDEAS
    14. Lorena D’Agostino, 2015. "How MNEs respond to environmental regulation: integrating the Porter hypothesis and the pollution haven hypothesis," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(2), pages 245-269, August.
    15. Ghisetti,Claudia & Marzucchi,Alberto & Montresor,Sandro, 2013. "Does external knowledge affect environmental innovations? An empirical investigation of eleven European countries," INGENIO (CSIC-UPV) Working Paper Series 201301, INGENIO (CSIC-UPV), revised 23 May 2013.
    16. Sebastian Losacker & Hendrik Hansmeier & Jens Horbach & Ingo Liefner, 2023. "The geography of environmental innovation: a critical review and agenda for future research," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 43(2), pages 291-316, August.
    17. Maïder SAINT-JEAN & Nabila ARFAOUI & Eric BROUILLAT & David VIRAPIN, 2019. "Mapping technological knowledge patterns: evidence from ocean energy technologies," Cahiers du GREThA 2019-09, Groupe de Recherche en Economie Théorique et Appliquée(GREThA).
    18. JS Keshminder & Pablo del Río, 2019. "The missing links? The indirect impacts of drivers on eco‐innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(5), pages 1100-1118, September.
    19. Ghisetti, Claudia & Marzucchi, Alberto & Montresor, Sandro, 2015. "The open eco-innovation mode. An empirical investigation of eleven European countries," Research Policy, Elsevier, vol. 44(5), pages 1080-1093.
    20. Liu, Xiaojing & Huang, Ningren & Su, Wunhong & Zhou, Haiyan, 2024. "Green innovation and corporate ESG performance: Evidence from Chinese listed companies," International Review of Economics & Finance, Elsevier, vol. 95(C).
    21. Massimiliano Mazzanti & Davide Antonioli & Francesco Nicolli & Marianna Gilli, 2013. "Information Technology, Environmental Innovations and Complementarity Strategies," Working Papers 2013132, University of Ferrara, Department of Economics.

    More about this item

    Keywords

    Environmental Patents; Energy-Related R&D Investments; USA; Canada; KRLS Model;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arv:journl:v:2:y:2024:i:2:p:115-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shahriyar Mukhtarov (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.