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Does environmental regulation drive specialisation in green innovation?
[La réglementation environnementale favorise-t-elle la spécialisation dans l'innovation verte ?]

Author

Listed:
  • Igor Bagayev

    (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel, UCD - University College Dublin [Dublin])

  • Dieter Kogler

    (UCD - University College Dublin [Dublin])

  • Julie Lochard

    (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel, UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

We examine the response of technological change to one of the major environmental regulations in the European Union (EU) – the Ambient Air Quality Directive (AAQD). Our identification strategy exploits the structure of this directive, which imposes air quality measures in regions exceeding pollutant concentration limits. We implement a quasi difference-in-differences strategy and test for the effect of environmental measures on innovation in 654 technology classes at the EU region (NUTS-2) level over the 1999–2015 period. We show that AAQD environmental measures drive the specialisation of regions in green technologies. We find a positive effect for patents in the two most prevailing green technology classes, i.e., clean energy and industrial processes, as well as evidence of spatial leakage.

Suggested Citation

  • Igor Bagayev & Dieter Kogler & Julie Lochard, 2025. "Does environmental regulation drive specialisation in green innovation? [La réglementation environnementale favorise-t-elle la spécialisation dans l'innovation verte ?]," Post-Print hal-05014132, HAL.
  • Handle: RePEc:hal:journl:hal-05014132
    DOI: 10.1016/j.jeem.2024.103101
    as

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