Threshold policy effects and directed technical change in Energy Innovation

Lionel Nesta, Elena Verdolini and Francesco Vona ()
Additional contact information
Francesco Vona: OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po

SciencePo Working papers Main from HAL

Abstract: This paper analyzes the effect of environmental policies on the direction of energy innovation across countries over the period 1990-2012. Our novelty is to use threshold regression models to allow for discontinuities in policy effectiveness depending on a country's relative competencies in renewable and fossil fuel technologies. We show that the dynamic incentives of environmental policies become effective just above the median level of relative competencies. In this critical second regime, market-based policies are moderately effective in promoting renewable innovation, while commandand-control policies depress fossil based innovation. Finally, market-based policies are more effective to consolidate a green comparative advantage in the last regime. We illustrate how our approach can be used for policy design in laggard countries.

Keywords: Directed technical change; Threshold models; Environmental policies; Policy mix (search for similar items in EconPapers)
Date: 2018-01-01
Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03475570
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://hal-sciencespo.archives-ouvertes.fr/hal-03475570/document (application/pdf)

Related works:
Working Paper: Threshold Policy Effects and Directed Technical Change in Energy Innovation (2018)
Working Paper: Threshold Policy Effects and Directed Technical Change in Energy Innovation (2018)
Working Paper: Threshold Policy Effects and Directed Technical Change in Energy Innovation (2018)
Working Paper: Threshold Policy Effects and Directed Technical Change in Energy Innovation (2018)
Working Paper: Threshold Policy Effects and Directed Technical Change in Energy Innovation (2018)
Working Paper: Threshold policy effects and directed technical change in Energy Innovation (2018)
Working Paper: Threshold Policy Effects and Directed Technical Change in Energy Innovation (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03475570

Access Statistics for this paper

More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().