Environmental policy and directed technological change: evidence from the European carbon market

Raphael Calel and Antoine Dechezleprêtre

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper investigates the impact of the EU Emissions 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 lowcarbon patenting compared to a counterfactual scenario.

Keywords: directed technological change; EU emissions trading scheme; policy evaluation (search for similar items in EconPapers)
JEL-codes: C14 O3 Q55 Q58 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2013-02-01
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Downloads: (external link)
http://eprints.lse.ac.uk/121774/ Open access version. (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 (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 Market (2012)
Working Paper: Environmental policy and directed technological change: evidence from the European carbon maket (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:121774

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