IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v33y2024i2p185-205.html
   My bibliography  Save this article

The complementary effects of environmental policy and oil prices on innovation: evidence from OECD countries

Author

Listed:
  • Inês Carrilho-Nunes
  • Margarida Catalão-Lopes

Abstract

This paper examines the single and the joint influence of environmental policy stringency and oil prices on green innovation, admitting the possibility of different magnitudes of the response of innovation depending upon whether oil prices are increasing or decreasing, and accounting for endogeneity of policies. A panel data set of OECD countries is used over the period 1990–2016. Results suggest that increasing the stringency of environmental regulation can, beyond inducing green innovation, shield the effect of oil prices on innovation. In addition, a more stringent environmental policy reduces the asymmetric response of innovation when oil price increases or decreases. Thus, environmental policy and oil prices can be complements when inducing green innovation. Exploiting these complementarities requires an interdependent use of environmental and energy policies, through dynamic adjustments of subsidies and taxes on oil prices alongside reasonable levels of stringency in environmental policy.

Suggested Citation

  • Inês Carrilho-Nunes & Margarida Catalão-Lopes, 2024. "The complementary effects of environmental policy and oil prices on innovation: evidence from OECD countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 33(2), pages 185-205, February.
  • Handle: RePEc:taf:ecinnt:v:33:y:2024:i:2:p:185-205
    DOI: 10.1080/10438599.2022.2150180
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10438599.2022.2150180
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/10438599.2022.2150180?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:taf:ecinnt:v:33:y:2024:i:2:p:185-205. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    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.