Environmental Policies and Innovation in Renewable Energy
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Summary:
This paper investigates the effect of Climate Change Policies (CCPs) on green innovation, for a sample of 40 advanced and emerging market economies and 5 economic sectors, during the period 2000-2021. Our results suggest that CCPs increase green patents, with the effect increasing gradually over time. The effect is larger for non-market-based policies—such as R&D subsidies—and technology-support instruments, in countries with greater competitiveness and during periods of stronger economic activity—that is, higher GDP growth, lower uncertainty and financial stress. The results based on a difference-in-differences approach suggest that the positive effect of stricter CCPs on green innovation is stronger in sectors with limited financial constraints.
Series:
Working Paper No. 2023/180
Subject:
Climate change Climate policy Competition Environment Environmental policy Financial markets Renewable energy
Frequency:
regular
English
Publication Date:
September 1, 2023
ISBN/ISSN:
9798400251658/1018-5941
Stock No:
WPIEA2023180
Format:
Paper
Pages:
55
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