Environmental policy and directed technological change: evidence from the European carbon market

Calel, Raphael and Dechezlepretre, Antoine (2013) Environmental policy and directed technological change: evidence from the European carbon market. CEP Discussion Papers (CEPDP1141). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

This paper investigates the impact of the EU Emissions Trading Scheme (EU ETS) on technological change. We exploit installations-level inclusion criteria to estimate the impact of the EU ETS on firms patenting. We find that the EU ETS has increased low-carbon innovation among regulated firms by as much as 10%, while not crowding out patenting for other technologies. We also find evidence that the EU ETS has not impacted patenting beyond the set of regulated companies. These results imply that the EU ETS accounts for nearly a 1% increase in European lowcarbon patenting compared to a counterfactual scenario.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2013 The Author(s)
Divisions:	Grantham Research Institute
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor T Technology > T Technology (General)
JEL classification:	O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q55 - Technological Innovation Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods: General > C14 - Semiparametric and Nonparametric Methods
Date Deposited:	22 Feb 2024 09:42
Last Modified:	14 Sep 2024 04:45
URI:	http://eprints.lse.ac.uk/id/eprint/121774

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