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Energy, the Environment, and Innovation

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Author Info

  • Michael Grubb
  • David Ulph

Abstract

In this paper we review the theoretical and empirical literature on the role of policies in stimulating innovation that is designed to produce greener and more energy-efficient technologies. First we review the theoretical literature on the role of purely environmental policies in inducing firms to undertake environmental innovation. The conclusion is that for a wide range of policies and in a wide range of circumstances one cannot prove that these policies necessarily induce greater innovation. We then consider the empirical evidence, which suggests that the effect of these policies is weak but that the largest effects come in the long run when, through learning-by-doing, firms better understand the scope and potential for new energy-efficient technologies. Finally we consider the design of both environmental and technology policies, and show that the interaction of these policies is complex and warrants considerable further research. Copyright 2002, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 18 (2002)
Issue (Month): 1 (Spring)
Pages: 92-106

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Handle: RePEc:oup:oxford:v:18:y:2002:i:1:p:92-106

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Cited by:
  1. Lehmann, Paul & Gawel, Erik, 2013. "Why should support schemes for renewable electricity complement the EU emissions trading scheme?," Energy Policy, Elsevier, vol. 52(C), pages 597-607.
  2. Bleischwitz, Raimund & Bader, Nikolas & Dannemand, Per & Nygaard, Anne, 2008. "EU Policies and Cluster Development of Hydrogen Communities," MPRA Paper 14501, University Library of Munich, Germany.
  3. Giulio Cainelli & Massimiliano Mazzanti & Roberto Zoboli, 2011. "Enviromental Innovations, Complementarity and Local/Global Cooperation," Working Papers 201104, University of Ferrara, Department of Economics.
  4. Francesco Ricci, 2004. "Channels of Transmission of Environmental Policy to Economic Growth: A Survey of the Theory," Working Papers 2004.52, Fondazione Eni Enrico Mattei.
  5. Bleischwitz, Raimund & Andersen, Lars-Morten, 2009. "Informational Barriers to Energy Efficiency – Theory and European Policies," MPRA Paper 19937, University Library of Munich, Germany.
  6. Massimiliano Mazzanti & Roberto Zoboli, 2006. "Examining the Factors Influencing Environmental Innovations," Working Papers 2006.20, Fondazione Eni Enrico Mattei.
  7. Timothy J. Foxon & Jonathan K�hler & Jonathan Michie & Christine Oughton, 2013. "Towards a new complexity economics for sustainability," Cambridge Journal of Economics, Oxford University Press, vol. 37(1), pages 187-208.
  8. Lehmann, Paul, 2008. "Using a policy mix for pollution control: A review of economic literature," UFZ Discussion Papers 4/2008, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
  9. Nicholas Howarth, 2011. "Clean Energy Technology and the Role of Non-Carbon Price-Based Policy: An Evolutionary Economics Perspective," European Planning Studies, Taylor & Francis Journals, vol. 20(5), pages 871-891, October.
  10. Olivier Godard, 2007. "Climat et générations futures - Un examen critique du débat académique suscité par le Rapport Stern," Working Papers hal-00243059, HAL.
  11. Bleischwitz, Raimund & Bader, Nikolas, 2010. "Policies for the transition towards a hydrogen economy: the EU case," Energy Policy, Elsevier, vol. 38(10), pages 5388-5398, October.
  12. Kesidou, Effie & Demirel, Pelin, 2012. "On the drivers of eco-innovations: Empirical evidence from the UK," Research Policy, Elsevier, vol. 41(5), pages 862-870.

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