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Linking induced technological change, and environmental regulation: Evidence from patenting in the U.S. auto industry

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  • Lee, Jaegul
  • Veloso, Francisco M.
  • Hounshell, David A.
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    Abstract

    This article uses a carefully screened patent database in automobile emission control technologies and a detailed regulatory action analysis to examine firms’ innovation in response to U.S. technology-forcing auto emissions standards enacted between 1970 and 1998. The study finds that under the performance-based technology-forcing (PBTF) auto emissions regulations, both automakers and component suppliers innovated and introduced more advanced emission control technologies for automobile applications. The study also shows that stringent PBTF regulation temporarily induced domestic U.S. firms to become more innovative than foreign firms that operated in the local U.S. market during the early phase of the regulatory regime. Findings of this research strongly imply that government intervention in the form of technology-forcing regulation can drive firms to invest in technological innovation.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0048733311001193
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    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 40 (2011)
    Issue (Month): 9 ()
    Pages: 1240-1252

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    Handle: RePEc:eee:respol:v:40:y:2011:i:9:p:1240-1252

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    Web page: http://www.elsevier.com/locate/respol

    Related research

    Keywords: Technology-forcing regulations; Environmental technologies; Auto industry; Environmental strategy;

    References

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    Citations

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    Cited by:
    1. Francesco Nicolli & Francesco Vona & Lionel Nesta, 2012. "Determinants of Renewable Energy Innovation: Environmental Policies vs. Market Regulation," Working Papers 201204, University of Ferrara, Department of Economics.
    2. Ambec, Stefan & Cohen, Mark & Elgie, Stewart & Lanoie, Paul, 2010. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," IDEI Working Papers 655, Institut d'Économie Industrielle (IDEI), Toulouse.
    3. Nelson, Andrew & Earle, Andrew & Howard-Grenville, Jennifer & Haack, Julie & Young, Doug, 2014. "Do innovation measures actually measure innovation? Obliteration, symbolic adoption, and other finicky challenges in tracking innovation diffusion," Research Policy, Elsevier, vol. 43(6), pages 927-940.
    4. F. Stam & Neil Thompson & Andrea Herrmann & Marko Hekkert, 2012. "The Environmental Regulation Paradox for Clean Tech Ventures," Scales Research Reports H201217, EIM Business and Policy Research.
    5. Franckx, Laurent, 2014. "Regulatory emission limits for mobile sources and the Porter hypothesis: a survey of the literature," MPRA Paper 56448, University Library of Munich, Germany.
    6. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09j0h0ji242 is not listed on IDEAS
    7. Antoine Dechezleprêtre & Richard Perkins & Eric Neumayer, 2012. "Regulatory distance and the transfer of new environmentally sound technologies: evidence from the automobile sector," Grantham Research Institute on Climate Change and the Environment Working Papers 73, Grantham Research Institute on Climate Change and the Environment.

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