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

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

No 102, GRI Working Papers from Grantham Research Institute on Climate Change and the Environment

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 morein clean technologies when they face higher tax-inclusive fuel prices. Furthermore,there is path dependence in the type of innovation both from aggregate spillovers andfrom the firm�s own innovation history. Using our model we simulate the increasesin carbon taxes needed to allow clean to overtake dirty technologies

Date: 2012-11
New Economics Papers: this item is included in nep-ene, nep-env, nep-his, nep-ino and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (63)

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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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