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Cold Start for the Green Innovation Machine

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  • Philippe Aghion
  • Reinhilde Veugelers
  • Clément Serre

Abstract

This Policy Contribution accompanies the Policy Brief, �No Green Growth Without Innovation�. Written by Senior Non-Resident Fellow Philippe Aghion, Senior Resident Fellow Reinhilde Veugelers and Researcher Clément Serre, this paper discusses the state of green innovation and goes into more depth in discussing the current problems in the area. Examining research and development, patent, and venture capital data, the authors point out that there is momentum for private investment in green technologies. However, they argue that, thus far, the implicit tax rate on energy in the EU27 is too low and fragmented, the carbon price in the EU Emissions Trading System is too volatile, and the public R&D expenditures dedicated to energy and environment are too low. They conclude that immediate state intervention is necessary, at least at the onset, to ensure that the �green innovation machine� gets properly started.

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Bibliographic Info

Paper provided by Bruegel in its series Policy Contributions with number 354.

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Date of creation: Nov 2009
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Handle: RePEc:bre:polcon:354

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Cited by:
  1. Martin Wörter & Tobias Stucki & Christian Soltmann, 2013. "The Performance Effect of Environmental Innovations," KOF Working papers 13-330, KOF Swiss Economic Institute, ETH Zurich.
  2. De Perthuis, Christian & Rosier, Philippe & Crassous, Renaud & Bonnet, Xavier & Ollivier, Timothée & Guillerminet, Marie-Laure & Lamotte, Henri & Crifo, Patricia & Bureau, Dominique & Quinet, Alain &, . "Le financement de la croissance verte," Open Access publications from Université Paris-Dauphine urn:hdl:123456789/7769, Université Paris-Dauphine.
  3. Grégoire Garsous, 2011. "On Clean Technology Diffusion Mechanisms," Working Papers ECARES ECARES 2011-013, ULB -- Universite Libre de Bruxelles.
  4. Simone Borghesi & Giulio Cainelli & Massimiliano Mazzanti, 2012. "Brown Sunsets and Green Dawns in the Industrial Sector: Environmental Innovations, Firm Behavior and the European Emission Trading," Working Papers 2012.03, Fondazione Eni Enrico Mattei.
  5. Giulio Cainelli & Massimiliano Mazzanti & Simone Borghesi, 2012. "The European Emission Trading Scheme and environmental innovation diffusion: Empirical analyses using Italian CIS data," Working Papers 201201, University of Ferrara, Department of Economics.

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