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Environmental Regulations, Market Structure and Technological Progress in Renewable Energy Technology — A Panel Data Study on Wind Turbines

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  • Dirk Rübbelke

    (Basque Centre for Climate Change (BC3) and IKERBASQUE, Basque Foundation for Science)

  • Pia Weiss

    (Nottingham University Business School)

Abstract

We study the impact of environmental regulations on the patent activities for wind turbines between 1980 and 2008. We explicitly control for energy market liberalisation and take a potential interaction between liberalisation and policy instruments into account. We find a strong and highly significant effect of environmental tax revenues, which we regard as a proxy for the extent to which energy prices changed in favour of renewable energies, as well as foreign demand for wind turbines on innovation activities. In addition, we find that price-based policy instruments are more effective in fostering innovations in the wind turbine technology when energy markets are fully open to competition. In contrast, non-price-based policy instruments such as grants or low interest rate loans are largely independent from whether or not energy markets are liberalised.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2011.32.

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Date of creation: Apr 2011
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Handle: RePEc:fem:femwpa:2011.32

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Keywords: Environmental Policy; Renewable Energy; Market Structure; Wind Turbines; Innovation; Patents; Technological Change;

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