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Innovation and Climate Policy

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  • David Popp

    ()
    (Department of Public Administration and Center for Policy Research, The Maxwell School, Syracuse University, Syracuse, New York 13244-1020
    National Bureau of Economic Research, Cambridge, Massachusetts 02138)

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    Abstract

    Reducing emissions of the greenhouse gases that cause climate change will require dramatic changes in the way that energy is produced and consumed. The cost of technological changes such as alternative energy sources and improved energy efficiency will play a large role in determining the overall cost of combating climate change. Government policy will heavily influence the development of such technologies. Both environmental and R&D policies provide incentives encouraging the development of clean technologies. Understanding the incentives provided by these policies, and their influence on the development of new technologies, is important for understanding the ultimate effects of climate policy. This article reviews the literature on environmental innovation and diffusion, with a focus on studies relevant to the development of clean energy technologies necessary to address climate change. I discuss the implications of this literature for the development of climate policy.

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    Bibliographic Info

    Article provided by Annual Reviews in its journal Annual Review of Resource Economics.

    Volume (Year): 2 (2010)
    Issue (Month): 1 (October)
    Pages: 275-298

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    Handle: RePEc:anr:reseco:v:2:y:2010:p:275-298

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    Related research

    Keywords: technological change; energy efficiency; alternative energy; R&D; diffusion;

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    Cited by:
    1. Marin, Giovanni, 2014. "Do eco-innovations harm productivity growth through crowding out? Results of an extended CDM model for Italy," Research Policy, Elsevier, vol. 43(2), pages 301-317.
    2. Garth Heutel & Carolyn Fischer, 2013. "Environmental Macroeconomics: Environmental Policy, Business Cycles, and Directed Technical Change," NBER Working Papers 18794, National Bureau of Economic Research, Inc.
    3. Bronwyn H. Hall & Christian Helmers, 2010. "The role of patent protection in (clean/green) technology transfer," CSAE Working Paper Series 2010-23, Centre for the Study of African Economies, University of Oxford.
    4. Algieri, Bernardina & Aquino, Antonio & Succurro, Marianna, 2011. "Going “green”: trade specialisation dynamics in the solar photovoltaic sector," Energy Policy, Elsevier, vol. 39(11), pages 7275-7283.
    5. Friebe, Christian A. & von Flotow, Paschen & Täube, Florian A., 2014. "Exploring technology diffusion in emerging markets – the role of public policy for wind energy," Energy Policy, Elsevier, vol. 70(C), pages 217-226.
    6. Raphael Calel, 2011. "Market-based instruments and technology choices: a synthesis," Grantham Research Institute on Climate Change and the Environment Working Papers 57, Grantham Research Institute on Climate Change and the Environment.
    7. Raphael Calel & Antoine Dechezleprêtre, 2012. "Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market," CEP Discussion Papers dp1141, Centre for Economic Performance, LSE.
    8. WenShwo Fang & Stephen M. Miller, 2012. "The effect of ESCOs on carbon dioxide emissions," Working papers 2012-14, University of Connecticut, Department of Economics.
    9. Jang, Heesun & Du, Xiaodong, 2013. "Trajectory of Maturity: An Empirical Analysis of US Biofuel Innovations," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150132, Agricultural and Applied Economics Association.

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