Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry

Philippe Aghion, John van Reenen, Ralf Martin, Hémous, David and Antoine Dechezleprêtre
Authors registered in the RePEc Author Service: Antoine Dechezleprêtre and David Hemous

No 9267, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between "dirty" (internal combustion engine) and "clean" (e.g. electric and hybrid) patents across 80 countries over several decades. We show that firms tend to innovate relatively more in clean technologies when they face higher tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers and from the firm's own innovation history. Using our model we simulate the increases in carbon taxes needed to allow clean to overtake dirty technologies.

Keywords: Automobiles; Climate change; Directed technical change; Innovation (search for similar items in EconPapers)
JEL-codes: L62 O13 O3 (search for similar items in EconPapers)
Date: 2012-12
New Economics Papers: this item is included in nep-ene, nep-env, nep-ino and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (75)

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Related works:
Journal Article: Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry (2016)
Working Paper: Carbon taxes, path dependency and directed technical change: evidence from the auto industry (2016)
Working Paper: Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry (2016)
Working Paper: Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry (2016)
Working Paper: Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry (2016)
Working Paper: Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry (2012)
Working Paper: Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry (2012)
Working Paper: Carbon taxes, path dependency and directed technical change: evidence from the auto industry (2012)
Working Paper: Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry (2012)
Working Paper: Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry (2012)
Working Paper: Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry (2012)
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