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Does foreign environmental policy influence domestic innovation?: evidence from the wind industry

Dechezlepretre, Antoine and Glachant, Matthieu (2013) Does foreign environmental policy influence domestic innovation?: evidence from the wind industry. Environmental and Resource Economics, online . pp. 1-23. ISSN 0924-6460 (In Press)

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Abstract

This paper analyses the relative influence of domestic and foreign demand-pull policies in wind power across OECD countries on the rate of innovation in this technology. We use annual wind power generation to capture the stringency of the portfolio of demand-pull policies in place (e.g., guaranteed tariffs, investment and production tax credits), and patent data as an indicator of innovation activity. We find that wind technology improvements respond positively to policies both home and abroad, but the marginal effect of domestic policies is 12 times greater. The influence of foreign polices is reduced by barriers to technology diffusion, in particular lax intellectual property rights. Reducing such barriers therefore constitutes a powerful policy leverage for boosting environmental innovation globally.

Item Type: Article
Official URL: http://www.springer.com/economics/environmental/jo...
Additional Information: © 2013 Springer Science+Business Media Dordrecht.
Library of Congress subject classification: G Geography. Anthropology. Recreation > GE Environmental Sciences
Sets: Research centres and groups > Grantham Research Institute on Climate Change and the Environment
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 01 Aug 2013 11:31
URL: http://eprints.lse.ac.uk/51289/

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