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Environmental Regulations, Market Structure and Technological Progress in Renewable Energy Technology — A Panel Data Study on Wind Turbines

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  • Rubbelke, Dirk T.G.
  • Weiss, Pia

Abstract

We study the impact of environmental regulations on the patent activities for wind turbines between 1980 and 2008. We explicitly control for energy market liberalisation and take a potential interaction between liberalisation and policy instruments into account. We find a strong and highly significant effect of environmental tax revenues, which we regard as a proxy for the extent to which energy prices changed in favour of renewable energies, as well as foreign demand for wind turbines on innovation activities. In addition, we find that price-based policy instruments are more effective in fostering innovations in the wind turbine technology when energy markets are fully open to competition. In contrast, non-price-based policy instruments such as grants or low interest rate loans are largely independent from whether or not energy markets are liberalised.

Suggested Citation

  • Rubbelke, Dirk T.G. & Weiss, Pia, 2011. "Environmental Regulations, Market Structure and Technological Progress in Renewable Energy Technology — A Panel Data Study on Wind Turbines," Sustainable Development Papers 102569, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemdp:102569
    DOI: 10.22004/ag.econ.102569
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    Cited by:

    1. Guillaume Bourgeois & Sandrine Mathy & Philippe Menanteau, 2017. "The effect of climate policies on renewable energies : a review of econometric studies [L’effet des politiques climatiques sur les énergies renouvelables : une revue des études économétriques]," Post-Print hal-01585906, HAL.
    2. Kristoffer Palage & Robert Lundmark & Patrik Söderholm, 2019. "The innovation effects of renewable energy policies and their interaction: the case of solar photovoltaics," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 217-254, April.
    3. Palage, Kristoffer & Lundmark, Robert & Söderholm, Patrik, 2019. "The impact of pilot and demonstration plants on innovation: The case of advanced biofuel patenting in the European Union," International Journal of Production Economics, Elsevier, vol. 210(C), pages 42-55.
    4. Grafström, Jonas & Lindman, Åsa, 2017. "Invention, innovation and diffusion in the European wind power sector," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 179-191.
    5. Grafström, Jonas & Jaunky, Vishal, 2017. "Convergence of Incentive Capabilities within the European Union," Ratio Working Papers 301, The Ratio Institute.
    6. Grafström, Jonas, 2017. "An Econometric Analysis of Divergence of Renewable Energy Invention Efforts in Europe," Ratio Working Papers 295, The Ratio Institute.
    7. Grafström, Jonas & Söderholm, Patrik & Gawel, Erik & Lehmann, Paul & Strunz, Sebastian, 2017. "Knowledge Accumulation from Public Renewable Energy R&D in the European Union: Converging or Diverging Trends?," Ratio Working Papers 292, The Ratio Institute.
    8. Jonas Grafström, 2018. "Divergence of renewable energy invention efforts in Europe: an econometric analysis based on patent counts," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(4), pages 829-859, October.
    9. Zheng-Xia He & Shi-Chun Xu & Qin-Bin Li & Bin Zhao, 2018. "Factors That Influence Renewable Energy Technological Innovation in China: A Dynamic Panel Approach," Sustainability, MDPI, vol. 10(1), pages 1-30, January.
    10. Lindman, Åsa & Söderholm, Patrik, 2016. "Wind energy and green economy in Europe: Measuring policy-induced innovation using patent data," Applied Energy, Elsevier, vol. 179(C), pages 1351-1359.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    JEL classification:

    • 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
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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