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Promoting Clean Energy Innovation at the State and Local Level

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  • Popp, David

Abstract

Innovation is an important part of energy policy, and encouraging clean energy innovation is often an explicit goal of policy makers. For local governments, promoting clean energy innovation is seen not only as a pathway to a cleaner economy but also as a tool for promoting the local economy. But is such optimism warranted? There is a substantial literature examining the relationships between innovation and environmental policy, but few studies focus explicitly on innovation at the state and local level. In this paper, I provide key lessons from research on clean energy innovation, focusing on lessons relevant for state and local governments. I then summarize the results of a recent working paper by Fu et al. (2018) that studied wind energy innovation across individual states in the United States. While state-level policies can promote clean energy innovation, it is overall market size that matters most. Thus, innovation need not occur in those states most actively promoting clean energy. I conclude with lessons for state and local governments drawn from both this work and the broader literature on energy innovation.

Suggested Citation

  • Popp, David, 2020. "Promoting Clean Energy Innovation at the State and Local Level," Agricultural and Resource Economics Review, Cambridge University Press, vol. 49(2), pages 360-373, August.
  • Handle: RePEc:cup:agrerw:v:49:y:2020:i:2:p:360-373_8
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    Cited by:

    1. Alola, Andrew Adewale & Rahko, Jaana, 2024. "The effects of environmental innovations and international technology spillovers on industrial and energy sector emissions – Evidence from small open economies," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    2. Paulius Šūmakaris & Renata Korsakienė & Deniss Ščeulovs, 2021. "Determinants of Energy Efficient Innovation: A Systematic Literature Review," Energies, MDPI, vol. 14(22), pages 1-20, November.
    3. Cheng, Ya & Sinha, Avik & Ghosh, Vinit & Sengupta, Tuhin & Luo, Huawei, 2021. "Carbon Tax and Energy Innovation at Crossroads of Carbon Neutrality: Designing a Sustainable Decarbonization Policy," MPRA Paper 108185, University Library of Munich, Germany, revised 2021.
    4. Dariusz Sala & Iryna Bashynska & Olena Pavlova & Kostiantyn Pavlov & Nelia Chorna & Roman Chornyi, 2023. "Investment and Innovation Activity of Renewable Energy Sources in the Electric Power Industry in the South-Eastern Region of Ukraine," Energies, MDPI, vol. 16(5), pages 1-21, March.
    5. Matthias van den Heuvel & David Popp, 2022. "The Role of Venture Capital and Governments in Clean Energy: Lessons from the First Cleantech Bubble," CESifo Working Paper Series 9684, CESifo.
    6. van den Heuvel, Matthias & Popp, David, 2023. "The role of venture capital and governments in clean energy: lessons from the first cleantech bubble," Energy Economics, Elsevier, vol. 124(C).
    7. Jun Wen & Lingxiao Li & Xinxin Zhao & Chenyang Jiao & Wenjie Li, 2022. "How Government Size Expansion Can Affect Green Innovation—An Empirical Analysis of Data on Cross-Country Green Patent Filings," IJERPH, MDPI, vol. 19(12), pages 1-22, June.
    8. Sławomir Stec & Elżbieta Jadwiga Szymańska, 2022. "Energy Innovation of Polish Local Governments," Energies, MDPI, vol. 15(4), pages 1-29, February.

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