Does environmental regulation drive specialisation in green innovation?
La réglementation environnementale favorise-t-elle la spécialisation dans l'innovation verte ?
Igor Bagayev,
Dieter Kogler and
Julie Lochard
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Igor Bagayev: ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel, UCD - University College Dublin [Dublin]
Dieter Kogler: UCD - University College Dublin [Dublin]
Julie Lochard: ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel, UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
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Abstract:
We examine the response of technological change to one of the major environmental regulations in the European Union (EU) – the Ambient Air Quality Directive (AAQD). Our identification strategy exploits the structure of this directive, which imposes air quality measures in regions exceeding pollutant concentration limits. We implement a quasi difference-in-differences strategy and test for the effect of environmental measures on innovation in 654 technology classes at the EU region (NUTS-2) level over the 1999–2015 period. We show that AAQD environmental measures drive the specialisation of regions in green technologies. We find a positive effect for patents in the two most prevailing green technology classes, i.e., clean energy and industrial processes, as well as evidence of spatial leakage.
Date: 2025-03
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Published in Journal of Environmental Economics and Management, 2025, 130, pp.103101. ⟨10.1016/j.jeem.2024.103101⟩
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05014132
DOI: 10.1016/j.jeem.2024.103101
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