The Drivers and Macroeconomic Impacts of Low-Carbon Innovation: A Cross-Country Exploration

Zeina Hasna, Henry Hatton, Florence Jaumotte, Jaden Kim, Kamiar Mohaddes and Samuel Pienknagura

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: This paper investigates how climate policies affect low-carbon innovation (as measured by patents) and assesses the link between such innovation and economic activity. Climate policies, including international cooperation, spur both specific and overall innovation, with regulations, emissions-trading systems, and expenditure measures such as R&D subsidies and feed-in tariffs being particularly impactful. In turn, low-carbon innovation raises economic activity as much as other types of innovation and past technological revolutions. However, the mechanisms are different: low-carbon innovation increases capital accumulation, while other types of innovation increase total factor productivity (TFP).

Keywords: low-carbon innovation; growth; climate policies; climate change; Porter Hypothesis (search for similar items in EconPapers)
JEL-codes: F64 H23 O33 O44 Q55 Q56 Q58 (search for similar items in EconPapers)
Pages: 68 pages
Date: 2025-07
New Economics Papers: this item is included in nep-cse and nep-sbm
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https://crawford.anu.edu.au/sites/default/files/20 ... ddes_Pienknagura.pdf (application/pdf)

Related works:
Working Paper: The Drivers and Macroeconomic Impacts of Low-Carbon Innovation: A Cross-Country Exploration (2025)
Working Paper: The Drivers and Macroeconomic Impacts of Low-Carbon Innovation: A Cross-Country Exploration (2025)
Working Paper: The Drivers and Macroeconomic Impacts of Low-Carbon Innovation: A Cross-Country Exploration (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2025-39

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