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E.T. and innovation - science fiction or reality? An assessment of the impact of emissions trading on innovation

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  • Gagelmann, Frank

Abstract

This discussion paper reviews the literature on experiences with innovation under the existing emissions trading schemes in the USA. The basic result from this review is that the innovation effects triggered by emissions trading have been limited because a) targets were not constraining in the beginning, especially under the RECLAIM program, and b) developments outside the permit markets have been exploited to an extent that was previously unexpected. The latter finding can, however, also be understood in part as a result of market forces finding creative solutions. A further result is that methodological approaches that measure innovation behaviour appear to be at least as important for the understanding of the issue as those looking for actual observed innovation.

Suggested Citation

  • Gagelmann, Frank, 2003. "E.T. and innovation - science fiction or reality? An assessment of the impact of emissions trading on innovation," UFZ Discussion Papers 13/2003, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    • Handle: RePEc:zbw:ufzdps:132003
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    References listed on IDEAS

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    Cited by:

    1. Obernhofer, Ulrich & Rennings, Klaus & Sahin, Bedia, 2006. "The impacts of the European Emissions Trading Scheme on competitiveness and employment in Europe: A literature review," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 111466.

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    More about this item

    Keywords

    Regulation; permit trading; empirical evaluation;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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