 Toward sustainable development: Does the rising oil price stimulate innovation in climate change mitigation technologies?Jun-Zhuo Wang, Gen-Fu Feng, Hua-Tang Yin and Chun-Ping Chang Economic Analysis and Policy, 2023, vol. 79, issue C, 569-583 Abstract: Existing research concerning determinants of climate change mitigation technology (CCMT) development mainly focuses on the role of climate policy, environmental awareness, or R&D intensity. What has been rarely noticed is that the oil price, as an indication of primary energy costs, can make countries with high energy intensity lean toward renewable energy consumption and invest more in the innovation activities of CCMT. Employing a panel investigation of 30 economies from 1990 to 2019, We find strong evidence that rising oil prices promote CCMT performance. The positive effect of increased oil prices on CCMT is imposed by lowering energy intensity, increasing renewable energy consumption, and promoting energy-technology R&D. Such an impact is more pronounced for CCMT related to energy generation and efficiency, greenhouse gas emissions, and transportation. To obtain more concrete policy implications, we also explore heterogeneities of this promoting effect across different levels of economic development and oil dependence. Keywords: Oil prices; Climate change mitigation technology; Green innovation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:79:y:2023:i:c:p:569-583 DOI: 10.1016/j.eap.2023.06.034 Access Statistics for this article Economic Analysis and Policy is currently edited by Clevo Wilson More articles in Economic Analysis and Policy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.