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Environmental Policies and directed technological change

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  • Gugler, Klaus
  • Szücs, Florian
  • Wiedenhofer, Thomas

Abstract

This article evaluates if and to which extent policy can steer innovation towards eco-friendly technologies. We construct a cross-country dataset on sectoral green innovation and complement it with data on policies designed to address environmental market failures: environmental taxes, regulation, and R&D subsidies. While all of these tools exert a positive effect on green innovation, our IV estimates reveal substantial heterogeneities across policies. Overall, green innovation reacts most strongly to R&D subsidies for renewables, but interaction effects between different policies need to be considered.

Suggested Citation

  • Gugler, Klaus & Szücs, Florian & Wiedenhofer, Thomas, 2024. "Environmental Policies and directed technological change," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:jeeman:v:124:y:2024:i:c:s0095069623001341
    DOI: 10.1016/j.jeem.2023.102916
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    1. Langinier, Corinne & Ray Chaudhuri, Amrita, 2024. "Green Patents in an Oligopolistic Market with Green Consumers," Working Papers 2024-7, University of Alberta, Department of Economics.

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    More about this item

    Keywords

    Climate change; Environmental policies; Directed technological change; Green patents; Regulation; Taxes; R&D;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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