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Does legal system matter for directed technical change? Evidence from the auto industry

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  • Per G. Fredriksson
  • Alexandre Sauquet

Abstract

Does the effect of fuel taxes on clean innovations (e.g. hybrid technology) depend on the legal system’s rigidity? Using 1986–2005 data from more than 1900 firms, evidence suggests that auto-industry firms located in civil law (with more rigid laws) countries increase clean technology patenting more than common law (with more flexible laws) firms when the tax-inclusive fuel price rises. A rigid legal system appears to raise clean technology innovation.

Suggested Citation

  • Per G. Fredriksson & Alexandre Sauquet, 2017. "Does legal system matter for directed technical change? Evidence from the auto industry," Applied Economics Letters, Taylor & Francis Journals, vol. 24(15), pages 1080-1083, September.
    • Handle: RePEc:taf:apeclt:v:24:y:2017:i:15:p:1080-1083
    DOI: 10.1080/13504851.2016.1254334
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    Cited by:

    1. Brehm, Johannes & aus dem Moore, Nils & Gruhl, Henri, 2022. "Driving Innovation? – Carbon Tax Effects in the Swedish Transport Sector," VfS Annual Conference 2022 (Basel): Big Data in Economics 264085, Verein für Socialpolitik / German Economic Association.
    2. Jayasekara, Dinithi N. & Fredriksson, Per G., 2021. "Culture, intellectual property rights, and technology adoption," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 317-330.

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