Environmental Policy and Directed Technological Change: Evidence from the European carbon market

Raphael Calel and Antoine Dechezleprêtre

Working Papers from Chaire Economie du climat

Abstract: This paper investigates the impact of the EU Emission Trading Scheme (EU ETS) on technological change. We exploit installations-level inclusion criteria to estimate the impact of the EU ETS on firms patenting. We find that the EU ETS has increased low-carbon innovation among regulated firms by as much as 10%, while not crowding out patenting for other technologies. We also find evidence that the EU ETS has not impacted patenting beyond the set of regulated companies. These results imply that the EU ETS accounts for nearly a 1% increase in European low-carbon patenting compared to a counterfactual scenario.

Keywords: Directed technological change; EU Emission Trading Scheme; Policy evaluation (search for similar items in EconPapers)
JEL-codes: C14 O3 Q55 Q58 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (77)

Downloads: (external link)
http://www.chaireeconomieduclimat.org/RePEc/cec/wp ... echezlepretre-v2.pdf Second version, 2012 (application/pdf)

Related works:
Journal Article: Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market (2016)
Working Paper: Environmental policy and directed technological change: evidence from the European carbon market (2016)
Working Paper: Environmental policy and directed technological change: evidence from the European carbon market (2013)
Working Paper: Environmental Policy and Directed Technological Change: Evidence from the European carbon market (2012)
Working Paper: Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market (2012)
Working Paper: Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market (2012)
Working Paper: Environmental policy and directed technological change: evidence from the European carbon maket (2012)
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