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Technological Spillover Effects of State Renewable Energy Policy: Evidence from Patent Counts

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  • Wancong Fu
  • Chong Li
  • Jan Ondrich
  • David Popp

Abstract

We examine the effect of in-state and out-of-state renewable energy policies on wind energy patenting. Using a semiparametric fixed-effects Tobit model, we regress patent counts on a series of policy variables within a state and a spatially weighted average for each of these policies implemented in other states. We develop a lower bound for the marginal effects and find important differences across policy types. For renewable portfolio standards, overall demand matters. Policies in other states increase innovation, but own-state policies do not. In contrast, for financial incentives such as tax incentives and subsidy policies, own-state policies induce innovation.

Suggested Citation

  • Wancong Fu & Chong Li & Jan Ondrich & David Popp, 2018. "Technological Spillover Effects of State Renewable Energy Policy: Evidence from Patent Counts," NBER Working Papers 25390, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:25390
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Dong, Zhaoyingzi & Liu, Haijing & Zhang, Weiwen, 2024. "The effect of information disclosure on low-carbon innovation," Energy, Elsevier, vol. 288(C).
    2. Silvia Dalla Fontana & Ramana Nanda, 2023. "Innovating to Net Zero: Can Venture Capital and Start-Ups Play a Meaningful Role?," Entrepreneurship and Innovation Policy and the Economy, University of Chicago Press, vol. 2(1), pages 79-105.
    3. David Popp, 2019. "Environmental Policy and Innovation: A Decade of Research," NBER Working Papers 25631, National Bureau of Economic Research, Inc.
    4. Zhao, Aiwu & Wang, Jingyi & Sun, Zhenzhen & Guan, Hongjun, 2022. "Environmental taxes, technology innovation quality and firm performance in China—A test of effects based on the Porter hypothesis," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 309-325.
    5. Tian, Yanping & Song, Wenjing & Liu, Min, 2021. "Assessment of how environmental policy affects urban innovation: Evidence from China’s low-carbon pilot cities program," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 41-56.
    6. F Baum, Christopher & Lööf, Hans & Stephan, Andreas & Viklund-Ros, Ingrid, 2019. "Innovation by start-up firms: The influence of the board of directors," Working Paper Series in Economics and Institutions of Innovation 483, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies, revised 16 Aug 2020.
    7. David Popp, 2019. "Environmental policy and innovation: a decade of research," CESifo Working Paper Series 7544, CESifo.
    8. Tobias Schultheiss & Uschi Backes-Gellner, 2024. "Does updating education curricula accelerate technology adoption in the workplace? Evidence from dual vocational education and training curricula in Switzerland," The Journal of Technology Transfer, Springer, vol. 49(1), pages 191-235, February.
    9. Chengming Li & Han Shi & Liangen Zeng & Xiaomeng Dong, 2022. "How Strategic Interaction of Innovation Policies between China’s Regional Governments Affects Wind Energy Innovation," Sustainability, MDPI, vol. 14(5), pages 1-20, February.
    10. Chakraborty, Saptorshee Kanto & Mazzanti, Massimiliano, 2020. "Energy intensity and green energy innovation: Checking heterogeneous country effects in the OECD," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 328-343.
    11. Christopher F. Baum & Hans Lööf & Andreas Stephan & Ingrid Viklund-Ros, 2019. "Innovation by start-up firms: The influence of the board of directors for knowledge spillovers," Boston College Working Papers in Economics 988, Boston College Department of Economics, revised 31 Aug 2021.

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    More about this item

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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