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Environmental policy and directed technological change: evidence from the European carbon maket

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  • Rafael Calel
  • Antoine Dechezleprêtre

Abstract

This paper investigates the impact of the EU Emissions Trading Scheme (EU ETS) on technological change. We exploit installations-level inclusion criteria to estimate the impact of the EU ETS on firms patenting. We ?nd that the EU ETS has increased low-carbon innovation among regulated firms by as much as 10%, while not crowding out patenting for other technologies. We also ?nd evidence that the EU ETS has not impacted patenting beyond the set of regulated companies. These results imply that the EU ETS accounts for nearly a 1% increase in European lowcarbon patenting compared to a counterfactual scenario.

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Paper provided by Grantham Research Institute on Climate Change and the Environment in its series Grantham Research Institute on Climate Change and the Environment Working Papers with number 75.

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Date of creation: Mar 2012
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Handle: RePEc:lsg:lsgwps:wp75

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Cited by:
  1. Angelo Antoci & Simone Borghesi & Mauro Sodini, 2012. "ETS and Technological Innovation: A Random Matching Model," Working Papers 2012.79, Fondazione Eni Enrico Mattei.
  2. Sebastian Petrick & Ulrich J. Wagner, 2014. "The Impact of Carbon Trading on Industry: Evidence from German Manufacturing Firms," Kiel Working Papers 1912, Kiel Institute for the World Economy.
  3. Tilmann Rave, 2013. "Politikkoordination bei der Energiewende – dargestellt am Beispiel des Emissionshandelssystems und der Förderung erneuerbarer Energien," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(12), pages 23-36, 06.
  4. Heindl, Peter & Lutz, Benjamin, 2012. "Carbon management: Evidence from case studies of German firms under the EU ETS," ZEW Discussion Papers 12-079, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. repec:hal:ciredw:hal-00866408 is not listed on IDEAS
  6. repec:hal:wpaper:hal-00866408 is not listed on IDEAS

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