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Directed Technical Change in Clean Energy: Evidence from the Solar Industry

Author

Listed:
  • Lööf, Hans

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Perez, Luis

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Baum, Christopher F

    (Department of Economics, Boston College and Department of Macroeconomics)

Abstract

This paper studies directed technical change and innovation in renewable energy. We construct panel data with micro- and macro observations from nearly 200 countries over a 20-year period and estimate how energy prices, government subsidies, financial markets, spillovers, and path dependence affect patenting in solar thermal and solar cells. Carbon taxes, R&D subsidies to solar technology and own-knowledge stocks have strong, significant positive effects on solar innovations. Subsidies to fossil energy have the adverse effect. We find no compelling evidence that the quality of financial markets and institutions has any consistent impact on the patenting activities of innovators in solar energy.

Suggested Citation

  • Lööf, Hans & Perez, Luis & Baum, Christopher F, 2018. "Directed Technical Change in Clean Energy: Evidence from the Solar Industry," Working Paper Series in Economics and Institutions of Innovation 470, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0470
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    More about this item

    Keywords

    Directed Technical Change; Climate Change; Innovation; Patents; Solar Energy.;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P47 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Performance and Prospects

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