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Improving the energy efficiency of building: The impact of environmental policy on technological innovation

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  • Joëlle Noailly

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Abstract

This paper investigates the impact of alternative environmental policy instruments on technological innovations aiming to improve the energy efficiency in buildings. The empirical analysis focuses on three main types of policy instruments, namely regulatory energy standards in buildings codes, energy taxes as captured by energy prices and specific governmental energy R&D expenditures. Technological innovation is measured using patent counts for specific technologies related to energy efficiency in buildings (e.g. insulation, high-efficiency boilers, energy-saving lightings). The estimates for seven European countries over the 1989-2004 period imply that a strengthening of 10% of the minimum insulation standards for walls would increase the likelihood to file additional patents by about 3%. In contrast, energy prices have no significant effect on the likelihood to patent. Governmental energy R&D support has a small positive significant effect on patenting activities.

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Bibliographic Info

Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Paper with number 137.

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Date of creation: Jan 2010
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Handle: RePEc:cpb:discus:137

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  1. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
  2. David Popp & Richard G. Newell & Adam B. Jaffe, 2009. "Energy, the Environment, and Technological Change," NBER Working Papers 14832, National Bureau of Economic Research, Inc.
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  5. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
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  8. Lucas W. Davis, 2010. "Evaluating the Slow Adoption of Energy Efficient Investments: Are Renters Less Likely to Have Energy Efficient Appliances?," NBER Working Papers 16114, National Bureau of Economic Research, Inc.
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  14. Popp, David, 2006. "International innovation and diffusion of air pollution control technologies: the effects of NOX and SO2 regulation in the US, Japan, and Germany," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 46-71, January.
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  17. repec:fth:harver:1473 is not listed on IDEAS
  18. Jaffe Adam B. & Stavins Robert N., 1995. "Dynamic Incentives of Environmental Regulations: The Effects of Alternative Policy Instruments on Technology Diffusion," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages S43-S63, November.
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Cited by:
  1. 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.
  2. Elisa Lanzi & Elena Verdolini & Ivan Hašcic, 2011. "Efficiency Improving Fossil Fuel Technologies for Electricity Generation: Data Selection and Trends," Working Papers 2011.10, Fondazione Eni Enrico Mattei.
  3. Noailly, Joëlle & Batrakova, Svetlana, 2010. "Stimulating energy-efficient innovations in the Dutch building sector: Empirical evidence from patent counts and policy lessons," Energy Policy, Elsevier, vol. 38(12), pages 7803-7817, December.

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