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Title Environmental Policies and directed technological change
ID_Doc 35437
Authors Gugler, K; Szücs, F; Wiedenhofer, T
Title Environmental Policies and directed technological change
Year 2024
Published
Abstract This article evaluates if and to which extent policy can steer innovation towards eco-friendly technologies. We construct a cross-country dataset on sectoral green innovation and complement it with data on policies designed to address environmental market failures: environmental taxes, regulation, and R&D subsidies. While all of these tools exert a positive effect on green innovation, our IV estimates reveal substantial heterogeneities across policies. Overall, green innovation reacts most strongly to R&D subsidies for renewables, but interaction effects between different policies need to be considered.
PDF https://doi.org/10.1016/j.jeem.2023.102916

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