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Exploring Links Between Innovation and Diffusion: Adoption of NOx Control Technologies at U.S. Coal-Fired Power Plants

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  • David Popp
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    Abstract

    While many studies have looked at innovation and adoption of technologies separately, the two processes are linked. Advances (and expected advances) in a single technology should affect both its adoption rate and the adoption of alternative technologies. Moreover, advances made abroad may affect adoption differently than improvements developed domestically. This paper combines plant-level data on U.S. coal-fired electric power plants with patent data pertaining to NOx pollution control techniques to study these links. I show that technological advances, particularly those made abroad, are important for the adoption of newer post-combustion treatment technologies, but have little effect on the adoption of older combustion modification techniques. Moreover, I provide evidence that adaptive R&D by U.S. firms is necessary before foreign innovations are adopted in the U.S. Expectations of future technological advances delay adoption. Nonetheless, as in other studies of environmental technologies, the effect of other explanatory variables is dominated by the effect of environmental regulations, demonstrating that the mere presence of environmental technologies is not enough to encourage its usage.

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    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12119.

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    Date of creation: Mar 2006
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    Publication status: published as Popp, David. "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, 2006, v51(1,Jan), 46-71.
    Handle: RePEc:nbr:nberwo:12119

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    12. 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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    23. repec:fth:harver:1473 is not listed on IDEAS
    24. Paul Stoneman & Otto Toivanen, 1997. "The Diffusion Of Multiple Technologies: An Empirical Study," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(1), pages 1-17.
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    Cited by:
    1. 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.
    2. repec:hal:wpaper:hal-00860045 is not listed on IDEAS
    3. Mary Lovely & David Popp, 2008. "Trade, Technology, and the Environment: Why Have Poor Countries Regulated Sooner?," NBER Working Papers 14286, National Bureau of Economic Research, Inc.
    4. Claudia Ghisetti & Francesco Quatraro, 2013. "Beyond inducement in climate change: Does environmental performance spur environmental technologies?," Post-Print hal-00860045, HAL.
    5. William A. Pizer & David Popp, 2007. "Endogenizing Technological Change: Matching Empirical Evidence to Modeling Needs," NBER Working Papers 13053, National Bureau of Economic Research, Inc.
    6. Claudia Ghisetti & Francesco Quatraro, 2013. "Beyond the Inducement in Climate Change: Do Environmental Performances Spur Enrivornmental Technologies? A Regional Analysis of Cross-Sectoral Differences," Working Papers 2013112, University of Ferrara, Department of Economics.

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