Environmental Policies and Directed Technological Change

Klaus Gugler (), Florian Szücs and Thomas Wiedenhofer ()
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Klaus Gugler: Department of Economics, Vienna University of Economics and Business
Thomas Wiedenhofer: Department of Economics, Vienna University of Economics and Business

Department of Economics Working Papers from Vienna University of Economics and Business, Department of Economics

Abstract: This article evaluates if and to which extent policy can steer innovation towards eco-friendly technologies. We construct a cross-country dataset on sectoral green innovation and complement it with data on policies designed to address environmental market failures: environmental taxes, regulation, and R&D subsidies. While all of these tools exert a positive effect on green innovation, our IV estimates reveal substantial heterogeneities across policies. Overall, green innovation reacts most strongly to R&D subsidies for renewables, but interaction effects between different policies need to be considered.

Keywords: climate change; environmental policies; directed technological change; green patents; regulation; taxes; R&D (search for similar items in EconPapers)
JEL-codes: Q54 Q55 Q58 (search for similar items in EconPapers)
Date: 2023-12
New Economics Papers: this item is included in nep-ene, nep-env and nep-sbm
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Related works:
Journal Article: Environmental Policies and directed technological change (2024)
Working Paper: Environmental Policies and Directed Technological Change (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwwuw:wuwp355

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