Does foreign environmental policy influence domestic innovation?: evidence from the wind industry

Antoine Dechezleprêtre and Matthieu Glachant

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper analyses the relative influence of domestic and foreign demand-pull policies in wind power across OECD countries on the rate of innovation in this technology. We use annual wind power generation to capture the stringency of the portfolio of demand-pull policies in place (e.g., guaranteed tariffs, investment and production tax credits), and patent data as an indicator of innovation activity. We find that wind technology improvements respond positively to policies both home and abroad, but the marginal effect of domestic policies is 12 times greater. The influence of foreign polices is reduced by barriers to technology diffusion, in particular lax intellectual property rights. Reducing such barriers therefore constitutes a powerful policy leverage for boosting environmental innovation globally.

Keywords: innovation; international technology diffusion; renewable energy policy; wind power (search for similar items in EconPapers)
JEL-codes: O31 O42 (search for similar items in EconPapers)
Date: 2014-06
New Economics Papers: this item is included in nep-ino, nep-int and nep-reg
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Citations: View citations in EconPapers (66)

Published in Environmental and Resource Economics, June, 2014, 58(3), pp. 391-413. ISSN: 0924-6460

Downloads: (external link)
http://eprints.lse.ac.uk/58155/ Open access version. (application/pdf)

Related works:
Journal Article: Does Foreign Environmental Policy Influence Domestic Innovation? Evidence from the Wind Industry (2014)
Working Paper: Does Foreign Environmental Policy Influence Domestic Innovation? Evidence from the Wind Industry (2014)
Working Paper: Does foreign environmental policy influence domestic innovation? Evidence from the wind industry (2011)
Working Paper: Does foreign environmental policy influence domestic innovation ? Evidence from the wind industry (2011)
Working Paper: Does foreign environmental policy influence domestic innovation? Evidence from the wind industry (2011)
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