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Differential Impact of Environmental Policy Instruments on Technological Change: A Review of the Empirical Literature


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  • Herman R.J. Vollebergh

    (Erasmus Universiteit Rotterdam)


This survey reviews the empirical literature on the impact of environmental policy instruments on the rate and direction of technological change. The survey is explicitly focused on the empirical identification of the hypothesis to expect a stronger impact from market-based incentives than from non-market alternatives. The general picture emerging from the recent literature is that there is a clear impact of environmental policy on invention, innovation and diffusion of technologies. Although studies on a differential impact are still very scarce, the available evidence suggests that innovators look carefully for rent opportunities, which in turn depend on the specific incentives signalled by the type of (environmental) policy.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 07-042/3.

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Date of creation: 05 Jun 2006
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Handle: RePEc:dgr:uvatin:20070042

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Keywords: Environmental policy instruments; technological change; innovation;

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Cited by:
  1. Rob Aalbers & Victoria Shestalova & Viktoria Kocsis, 2012. "Innovation policy for directing technical change in the power sector," CPB Discussion Paper 223, CPB Netherlands Bureau for Economic Policy Analysis.


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