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Innovation and Climate Policy

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  • David Popp
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    Abstract

    Reducing emissions of the greenhouse gases that cause climate change will require dramatic changes in the way that energy is produced and consumed. The cost of technological changes such as alternative energy sources and improved energy efficiency will play a large role in determining the overall cost of combating climate change. The development of these technologies will be heavily influenced by government policy. Both environmental and R&D policies provide incentives encouraging the development of clean technologies. Understanding the incentives provided by these policies, and their influence on the development of new technologies, is important for understanding the ultimate effects of climate policy. This chapter reviews the literature on environmental innovation and diffusion, with a focus on studies relevant to the development of clean energy technologies necessary to address climate change. I discuss the implications of this literature for the development of climate policy.

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    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15673.

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    Date of creation: Jan 2010
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    Publication status: published as “Innovation and Climate Policy,” Annual Review of Resource Economics, vol. 2, 2010, Gordon C. Rausser, V. Kerry Smith and David Zilberman eds., Annual Reviews, Palo Alto, CA, pp. 275-298.
    Handle: RePEc:nbr:nberwo:15673

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    Cited by:
    1. Atkinson, Robert D. & Hackler, Darrene, 2010. "Economic Doctrines and Approaches to Climate Change Policy," MPRA Paper 29718, University Library of Munich, Germany.
    2. Bronwyn H. Hall & Christian Helmers, 2010. "The role of patent protection in (clean/green) technology transfer," CSAE Working Paper Series 2010-23, Centre for the Study of African Economies, University of Oxford.
    3. Carolyn Fischer & Garth Heutel, 2013. "Environmental Macroeconomics: Environmental Policy, Business Cycles, and Directed Technical Change," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 197-210, 06.
    4. Marin, Giovanni, 2014. "Do eco-innovations harm productivity growth through crowding out? Results of an extended CDM model for Italy," Research Policy, Elsevier, vol. 43(2), pages 301-317.
    5. Raphael Calel & Antoine Dechezlepretre, 2012. "Environmental Policy and Directed Technological Change: Evidence from the European carbon market," Working Papers 1208, Chaire Economie du Climat.
    6. WenShwo Fang & Stephen M. Miller, 2012. "The effect of ESCOs on carbon dioxide emissions," Working papers 2012-14, University of Connecticut, Department of Economics.
    7. Dutz, Mark A. & Sharma, Siddharth, 2012. "Green growth, technology and innovation," Policy Research Working Paper Series 5932, The World Bank.
    8. Raphael Calel, 2011. "Market-based instruments and technology choices: a synthesis," Grantham Research Institute on Climate Change and the Environment Working Papers 57, Grantham Research Institute on Climate Change and the Environment.
    9. Friebe, Christian A. & von Flotow, Paschen & Täube, Florian A., 2014. "Exploring technology diffusion in emerging markets – the role of public policy for wind energy," Energy Policy, Elsevier, vol. 70(C), pages 217-226.
    10. Algieri, Bernardina & Aquino, Antonio & Succurro, Marianna, 2011. "Going “green”: trade specialisation dynamics in the solar photovoltaic sector," Energy Policy, Elsevier, vol. 39(11), pages 7275-7283.
    11. Jang, Heesun & Du, Xiaodong, 2013. "Trajectory of Maturity: An Empirical Analysis of US Biofuel Innovations," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150132, Agricultural and Applied Economics Association.

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