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The Effect of Within-Sector, Upstream and Downstream Energy Taxes on Innovation and Productivity

Author

Listed:
  • Chiara Franco

    (Catholic University of the Sacred Heart of Milan, Italy)

  • Giovanni Marin

    (Ceris-CNR, Institute for Economic Research on Firms and Growth, National Research Council of Italy.)

Abstract

Energy efficiency technologies represent a key driver for the reduction of the energy demand, leading to environmental and economic benefits. This aspect appears to be particularly relevant in the residential sector, where the demand for energy has not showed a decreasing trend over the last two decades. Our study provides a wide-ranging empirical analysis of the drivers of innovation in energy efficiency technologies by looking at the residential sector for a comprehensive panel of 23 OECD countries over the 1990-2010 period. It confirms the importance of adopting a systemic perspective when eco-innovation is under scrutiny. In particular, the innovation system, both national and sectoral, together with the environmental and the energy systems, spurred the propensity to innovate and significantly shaped the rate and direction of technical change in the residential sector. A general policy inducement effect is found to be relevant, but the size of its contribution for new EE technologies changes if disaggregated policy instruments are investigated. We note a positive and significant impact not only driven by standard regulations, but also by policies aimed at improving the level of consumers' information and awareness. These evidences lead to noteworthy policy implications and suggest the way to further develop research in this field.

Suggested Citation

  • Chiara Franco & Giovanni Marin, 2013. "The Effect of Within-Sector, Upstream and Downstream Energy Taxes on Innovation and Productivity," SEEDS Working Papers 0214, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jan 2014.
    • Handle: RePEc:srt:wpaper:0214
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    References listed on IDEAS

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    Cited by:

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    2. Massimiliano Mazzanti & Giovanni Marin & Susanna Mancinelli & Francesco Nicolli, 2015. "Carbon dioxide reducing environmental innovations, sector upstream/downstream integration and policy: evidence from the EU," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(4), pages 709-735, November.
    3. Peng, Jiaying & Xie, Rui & Ma, Chunbo & Fu, Yang, 2021. "Market-based environmental regulation and total factor productivity: Evidence from Chinese enterprises," Economic Modelling, Elsevier, vol. 95(C), pages 394-407.
    4. Xinfei Li & Baodong Cheng & Qiling Hong & Chang Xu, 2021. "Can a Win–Win Situation of Economy and Environment Be Achieved in Cities by the Government’s Environmental Regulations?," Sustainability, MDPI, vol. 13(11), pages 1-20, May.
    5. Xinfei Li & Chang Xu & Baodong Cheng & Jingyang Duan & Yueming Li, 2021. "Does Environmental Regulation Improve the Green Total Factor Productivity of Chinese Cities? A Threshold Effect Analysis Based on the Economic Development Level," IJERPH, MDPI, vol. 18(9), pages 1-21, April.
    6. Marianna Gilli, 2016. "Towards a low carbon Europe: the role of technological change and environmental policies in European manufacturing sectors," SEEDS Working Papers 0516, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Apr 2016.
    7. Wang, Yan & Shen, Neng, 2016. "Environmental regulation and environmental productivity: The case of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 758-766.
    8. Xie, Rong-hui & Yuan, Yi-jun & Huang, Jing-jing, 2017. "Different Types of Environmental Regulations and Heterogeneous Influence on “Green” Productivity: Evidence from China," Ecological Economics, Elsevier, vol. 132(C), pages 104-112.
    9. Lorena D’Agostino, 2015. "How MNEs respond to environmental regulation: integrating the Porter hypothesis and the pollution haven hypothesis," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(2), pages 245-269, August.

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    More about this item

    Keywords

    Energy Taxes; Porter Hypothesis; upstream; down-stream;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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