EconPapers    
Economics at your fingertips  
 

The Effect of Within-Sector, Upstream and Downstream Energy Taxes on Innovation and Productivity

Chiara Franco and Giovanni Marin ()

No 162419, Energy: Resources and Markets from Fondazione Eni Enrico Mattei (FEEM)

Abstract: The aim of the paper is to investigate the effect of environmental stringency on innovation and productivity using a cross-country panel made up of 7 European countries for 13 manufacturing sectors over the years 2001-2007. This research topic goes under the heading of Porter Hypothesis (PH) of which different versions have been tested. We take into consideration both the strong and the weak versions while adding some peculiarities to the analysis. Firstly, we assess the role played by a specific environmental regulation, that is energy taxes, that have rarely been empirically tested as factors that can favour PH hypothesis to be verified. Secondly, we do not consider, within the same framework, only the effect of energy taxes in the same sector (within-sector), but also the role played by energy taxes in upstream and downstream sectors in terms of input-output relationship. Thirdly, we test these relationships also “indirectly” by verifying whether innovation can be one of the channels through which higher sectoral productivity can be reached. The main findings suggest that downstream stringency is the most relevant driver for innovation and that most of the effect of regulation on productivity is direct, while the part of the effect mediated by induced innovation is not statistically significant.

Keywords: Resource; /Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 2013-12
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://ageconsearch.umn.edu/record/162419/files/NDL2013-103.pdf (application/pdf)

Related works:
Working Paper: The Effect of Within-Sector, Upstream and Downstream Energy Taxes on Innovation and Productivity (2014) Downloads
Working Paper: The Effect of Within-Sector, Upstream and Downstream Energy Taxes on Innovation and Productivity (2013) Downloads
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:ags:feemer:162419

DOI: 10.22004/ag.econ.162419

Access Statistics for this paper

More papers in Energy: Resources and Markets from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2019-10-12
Handle: RePEc:ags:feemer:162419