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Towards a low carbon Europe: the role of technological change and environmental policies in European manufacturing sectors

Marianna Gilli

No 516, SEEDS Working Papers from SEEDS, Sustainability Environmental Economics and Dynamics Studies

Abstract: This paper aims to shed light on the role of environmental policies, technological change and their interaction, on CO2 emissions in Europe. Building on the literature, which studies the relationship between environmental performances and technological change, as well as the literature related to the effects of environmental policy, two hypothesis are framed: the first one is that both environmental policy and technological change have a negative effect on CO2 emissions level. The second one is that technological change and environmental policy are complementary determinants of a reduced CO2 level. Both a fixed effects model and IV model are applied. Results offer support to these hypothesis and highlight sectorial differences in policy and technology effects toward lower emissions levels.

Keywords: technological change; environmental policy; pollution emissions (search for similar items in EconPapers)
JEL-codes: L60 O33 Q53 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2016-04, Revised 2016-04
New Economics Papers: this item is included in nep-ene, nep-env, nep-eur, nep-ino and nep-res
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Downloads: (external link) First version, 2016 (application/pdf) Revised version, 2016 (application/pdf)

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