IDEAS home Printed from https://ideas.repec.org/p/srt/wpaper/1914.html
   My bibliography  Save this paper

Policy Inducement Effects in Energy Efficiency Technologies. An Empirical Analysis on the Residential Sector

Author

Listed:
  • Valeria Costantini

    (Dipartimento di Economia, Roma Tre University, Roma (Italy).)

  • Francesco Crespi

    (Dipartimento di Economia, Roma Tre University, Roma (Italy).)

  • Alessandro Palma

    (Dipartimento di Economia, Roma Tre University, Roma (Italy).)

Abstract

The study provides a wide-ranging empirical analysis of the drivers of innovation, with a particular focus on the policy side, in residential energy efficiency technologies. The panel analysis of 23 OECD countries over the period 1990-2010, confirms the importance of adopting a systemic perspective when eco-innovation is under scrutiny. In particular, the innovation systems, both national and sectoral, together with 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. The role of policy mix as well as of policy coordination and coherence also positively affect the innovative activity in EE residential technologies.

Suggested Citation

  • Valeria Costantini & Francesco Crespi & Alessandro Palma, 2014. "Policy Inducement Effects in Energy Efficiency Technologies. An Empirical Analysis on the Residential Sector," SEEDS Working Papers 1914, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Aug 2014.
  • Handle: RePEc:srt:wpaper:1914
    as

    Download full text from publisher

    File URL: http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/1914.pdf
    File Function: First version, 2014
    Download Restriction: no

    File URL: http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/1914.pdf
    File Function: Revised version, 2014
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jaffe Adam B. & Stavins Robert N., 1995. "Dynamic Incentives of Environmental Regulations: The Effects of Alternative Policy Instruments on Technology Diffusion," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages 43-63, November.
    2. Vanessa Oltra & Rene Kemp & Frans P. De Vries, 2010. "Patents as a measure for eco-innovation," International Journal of Environmental Technology and Management, Inderscience Enterprises Ltd, vol. 13(2), pages 130-148.
    3. Ashoff, Guido, 2005. "Enhancing policy coherence for development: justification, recognition and approaches to achievement," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 11, number 11.
    4. Wayne B. Gray & Ronald J. Shadbegian, 2007. "The Environmental Performance Of Polluting Plants: A Spatial Analysis," Journal of Regional Science, Wiley Blackwell, vol. 47(1), pages 63-84, February.
    5. Binswanger, Hans P, 1974. "A Microeconomic Approach to Induced Innovation," Economic Journal, Royal Economic Society, vol. 84(336), pages 940-958, December.
    6. Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2005. "Market Value and Patent Citations," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 16-38, Spring.
    7. Ivan Haščič & Frans de Vries & Nick Johnstone & Neelakshi Medhi, 2009. "Effects of environmental policy on the type of innovation: The case of automotive emission-control technologies," OECD Journal: Economic Studies, OECD Publishing, vol. 2009(1), pages 1-18.
    8. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    9. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
    10. repec:fth:harver:1473 is not listed on IDEAS
    11. Bronwyn H. Hall, 2010. "Measuring the Returns to R&D: The Depreciation Problem," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 341-381, National Bureau of Economic Research, Inc.
    12. François Moreau, 2004. "The role of the state in evolutionary economics," Cambridge Journal of Economics, Oxford University Press, vol. 28(6), pages 847-874, November.
    13. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    14. van den Bergh, Jeroen C. J. M. & Ferrer-i-Carbonell, Ada & Munda, Giuseppe, 2000. "Alternative models of individual behaviour and implications for environmental policy," Ecological Economics, Elsevier, vol. 32(1), pages 43-61, January.
    15. Borrás, Susana & Edquist, Charles, 2013. "The choice of innovation policy instruments," Technological Forecasting and Social Change, Elsevier, vol. 80(8), pages 1513-1522.
    16. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    17. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343, National Bureau of Economic Research, Inc.
    18. Lanjouw, Jean O & Pakes, Ariel & Putnam, Jonathan, 1998. "How to Count Patents and Value Intellectual Property: The Uses of Patent Renewal and Application Data," Journal of Industrial Economics, Wiley Blackwell, vol. 46(4), pages 405-432, December.
    19. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    20. David Popp, 2010. "Innovation and Climate Policy," NBER Working Papers 15673, National Bureau of Economic Research, Inc.
    21. Raymond J.G.M. Florax & Henri L.F. de Groot & Peter Mulder (ed.), 2011. "Improving Energy Efficiency through Technology," Books, Edward Elgar Publishing, number 3830.
    22. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    23. Stamatios Christopoulos & Balazs Horvath & Michael Kull, 2012. "Advancing The Governance Of Cross‐Sectoral Policies For Sustainable Development: A Metagovernance Perspective," Public Administration & Development, Blackwell Publishing, vol. 32(3), pages 305-323, August.
    24. Dodgson, Mark & Hughes, Alan & Foster, John & Metcalfe, Stan, 2011. "Systems thinking, market failure, and the development of innovation policy: The case of Australia," Research Policy, Elsevier, vol. 40(9), pages 1145-1156.
    25. Unruh, Gregory C., 2000. "Understanding carbon lock-in," Energy Policy, Elsevier, vol. 28(12), pages 817-830, October.
    26. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 941-975.
    27. Elena Verdolini & Marzio Galeotti, 2009. "At Home and Abroad: An Empirical Analysis of Innovation and Diffusion in Energy-Efficient Technologies," Working Papers 2009.123, Fondazione Eni Enrico Mattei.
    28. Rammel, Christian & van den Bergh, Jeroen C. J. M., 2003. "Evolutionary policies for sustainable development: adaptive flexibility and risk minimising," Ecological Economics, Elsevier, vol. 47(2-3), pages 121-133, December.
    29. Wilson, Bruce & Trieu, Luan Ho & Bowen, Bruce, 1994. "Energy efficiency trends in Australia," Energy Policy, Elsevier, vol. 22(4), pages 287-295, April.
    30. Rainer Winkelmann, 2008. "Econometric Analysis of Count Data," Springer Books, Springer, edition 0, number 978-3-540-78389-3, June.
    31. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    32. David Popp, 2010. "Innovation and Climate Policy," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 275-298, October.
    33. Nicolas van Zeebroeck & Bruno van Pottelsberghe de la Potterie & Wook Han, 2006. "Issues in measuring the degree of technological specialisation with patent data," Scientometrics, Springer;Akadémiai Kiadó, vol. 66(3), pages 481-492, March.
    34. Rene Kemp & Vanessa Oltra, 2011. "Research Insights and Challenges on Eco-Innovation Dynamics," Industry and Innovation, Taylor & Francis Journals, vol. 18(3), pages 249-253.
    35. Bruno Van Pottelsberghe & Herman Denis & Dominique Guellec, 2001. "Using patent counts for cross-country comparisons of technology output," ULB Institutional Repository 2013/6227, ULB -- Universite Libre de Bruxelles.
    36. Lanjouw, Jean Olson & Mody, Ashoka, 1996. "Innovation and the international diffusion of environmentally responsive technology," Research Policy, Elsevier, vol. 25(4), pages 549-571, June.
    37. Noailly, Joëlle, 2012. "Improving the energy efficiency of buildings: The impact of environmental policy on technological innovation," Energy Economics, Elsevier, vol. 34(3), pages 795-806.
    38. Arundel, A & Kemp, Rene, 2009. "Measuring eco-innovation," Working Papers 10062, University of Tasmania, Tasmanian School of Business and Economics, revised 30 Aug 2010.
    39. Jean O. Lanjouw & Ariel Pakes & Jonathan Putnam, 1998. "How to Count Patents and Value Intellectual Property: The Uses of Patent Renewal and Application Data," Journal of Industrial Economics, Wiley Blackwell, vol. 46(4), pages 405-432, December.
    40. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
    41. Popp, David, 2005. "Lessons from patents: Using patents to measure technological change in environmental models," Ecological Economics, Elsevier, vol. 54(2-3), pages 209-226, August.
    42. Nill, Jan & Kemp, Ren, 2009. "Evolutionary approaches for sustainable innovation policies: From niche to paradigm?," Research Policy, Elsevier, vol. 38(4), pages 668-680, May.
    43. Verdolini, Elena & Galeotti, Marzio, 2011. "At home and abroad: An empirical analysis of innovation and diffusion in energy technologies," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 119-134, March.
    44. Jenne, C. A. & Cattell, R. K., 1983. "Structural change and energy efficiency in industry," Energy Economics, Elsevier, vol. 5(2), pages 114-123, April.
    45. Noailly, Joëlle & Batrakova, Svetlana, 2010. "Stimulating energy-efficient innovations in the Dutch building sector: Empirical evidence from patent counts and policy lessons," Energy Policy, Elsevier, vol. 38(12), pages 7803-7817, December.
    46. Smith, Adrian & Voß, Jan-Peter & Grin, John, 2010. "Innovation studies and sustainability transitions: The allure of the multi-level perspective and its challenges," Research Policy, Elsevier, vol. 39(4), pages 435-448, May.
    47. Nemet, Gregory F., 2009. "Demand-pull, technology-push, and government-led incentives for non-incremental technical change," Research Policy, Elsevier, vol. 38(5), pages 700-709, June.
    48. C. Lanier Benkard, 2000. "Learning and Forgetting: The Dynamics of Aircraft Production," American Economic Review, American Economic Association, vol. 90(4), pages 1034-1054, September.
    49. Markard, Jochen & Raven, Rob & Truffer, Bernhard, 2012. "Sustainability transitions: An emerging field of research and its prospects," Research Policy, Elsevier, vol. 41(6), pages 955-967.
    50. del Río González, Pablo & Hernández, Félix, 2007. "How do energy & environmental policy goals and instruments affect electricity demand? A framework for the analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(9), pages 2006-2031, December.
    51. Ruud E. Smits & Stefan Kuhlmann & Phillip Shapira (ed.), 2010. "The Theory and Practice of Innovation Policy," Books, Edward Elgar Publishing, number 4181.
    52. van der Straaten, J., 1994. "Sustainable development and public policy," WORC Paper 94.03.010/2, Tilburg University, Work and Organization Research Centre.
    53. Malerba, Franco & Orsenigo, Luigi, 1996. "The Dynamics and Evolution of Industries," Industrial and Corporate Change, Oxford University Press, vol. 5(1), pages 51-87.
    54. Florian Kern & Michael Howlett, 2009. "Implementing transition management as policy reforms: a case study of the Dutch energy sector," Policy Sciences, Springer;Society of Policy Sciences, vol. 42(4), pages 391-408, November.
    55. Flanagan, Kieron & Uyarra, Elvira & Laranja, Manuel, 2011. "Reconceptualising the 'policy mix' for innovation," Research Policy, Elsevier, vol. 40(5), pages 702-713, June.
    56. Costantini, Valeria & Mazzanti, Massimiliano & Montini, Anna, 2013. "Environmental performance, innovation and spillovers. Evidence from a regional NAMEA," Ecological Economics, Elsevier, vol. 89(C), pages 101-114.
    57. Simone Borghesi & Valeria Costantini & Francesco Crespi & Massimiliano Mazzanti, 2013. "Environmental innovation and socio-economic dynamics in institutional and policy contexts," Journal of Evolutionary Economics, Springer, vol. 23(2), pages 241-245, April.
    58. World Bank, 2013. "World Development Indicators 2013," World Bank Publications - Books, The World Bank Group, number 13191, December.
    59. Arundel, Anthony & Kabla, Isabelle, 1998. "What percentage of innovations are patented? empirical estimates for European firms," Research Policy, Elsevier, vol. 27(2), pages 127-141, June.
    60. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    61. Jean O. Lanjouw & Mark Schankerman, 2004. "Patent Quality and Research Productivity: Measuring Innovation with Multiple Indicators," Economic Journal, Royal Economic Society, vol. 114(495), pages 441-465, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Girod, Bastien & Stucki, Tobias & Woerter, Martin, 2017. "How do policies for efficient energy use in the household sector induce energy-efficiency innovation? An evaluation of European countries," Energy Policy, Elsevier, vol. 103(C), pages 223-237.
    2. Costantini, Valeria & Crespi, Francesco & Paglialunga, Elena & Sforna, Giorgia, 2020. "System transition and structural change processes in the energy efficiency of residential sector: Evidence from EU countries," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 309-329.
    3. Ghisetti, Claudia & Pontoni, Federico, 2015. "Investigating policy and R&D effects on environmental innovation: A meta-analysis," Ecological Economics, Elsevier, vol. 118(C), pages 57-66.
    4. Costantini, Valeria & Crespi, Francesco & Paglialunga, Elena, 2018. "The employment impact of private and public actions for energy efficiency: Evidence from European industries," Energy Policy, Elsevier, vol. 119(C), pages 250-267.
    5. Bruns, Stephan B. & Kalthaus, Martin, 2020. "Flexibility in the selection of patent counts: Implications for p-hacking and evidence-based policymaking," Research Policy, Elsevier, vol. 49(1).
    6. Costantini, Valeria & Crespi, Francesco & Palma, Alessandro, 2017. "Characterizing the policy mix and its impact on eco-innovation: A patent analysis of energy-efficient technologies," Research Policy, Elsevier, vol. 46(4), pages 799-819.
    7. Valeria Costantini & Francesco Crespi & Alessandro Palma, 2015. "Characterizing the policy mix and its impact on eco-innovation in energy-efficient technologies," SEEDS Working Papers 1115, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jun 2015.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Valeria Costantini & Francesco Crespi & Alessandro Palma, 2015. "Characterizing the policy mix and its impact on eco-innovation in energy-efficient technologies," SEEDS Working Papers 1115, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jun 2015.
    2. Costantini, Valeria & Crespi, Francesco & Palma, Alessandro, 2017. "Characterizing the policy mix and its impact on eco-innovation: A patent analysis of energy-efficient technologies," Research Policy, Elsevier, vol. 46(4), pages 799-819.
    3. Giovanni Marin & Alessandro Palma, 2015. "Technology Invention and Diffusion in Residential Energy Consumption. A Stochastic Frontier Approach," Working Papers 2015.104, Fondazione Eni Enrico Mattei.
    4. Costantini, Valeria & Crespi, Francesco & Martini, Chiara & Pennacchio, Luca, 2015. "Demand-pull and technology-push public support for eco-innovation: The case of the biofuels sector," Research Policy, Elsevier, vol. 44(3), pages 577-595.
    5. Costantini, Valeria & Crespi, Francesco & Paglialunga, Elena & Sforna, Giorgia, 2020. "System transition and structural change processes in the energy efficiency of residential sector: Evidence from EU countries," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 309-329.
    6. Ghisetti, Claudia & Marzucchi, Alberto & Montresor, Sandro, 2015. "The open eco-innovation mode. An empirical investigation of eleven European countries," Research Policy, Elsevier, vol. 44(5), pages 1080-1093.
    7. Antoine Dechezleprêtre & Matthieu Glachant, 2014. "Does Foreign Environmental Policy Influence Domestic Innovation? Evidence from the Wind Industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 391-413, July.
    8. Marin, Giovanni & Palma, Alessandro, 2017. "Technology invention and adoption in residential energy consumption," Energy Economics, Elsevier, vol. 66(C), pages 85-98.
    9. Kim, Yeong Jae & Brown, Marilyn, 2019. "Impact of domestic energy-efficiency policies on foreign innovation: The case of lighting technologies," Energy Policy, Elsevier, vol. 128(C), pages 539-552.
    10. Patricia Laurens & Christian Le Bas & Stéphane Lhuillery & Antoine Schoen, 2017. "The determinants of cleaner energy innovations of the world’s largest firms: the impact of firm learning and knowledge capital," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(4), pages 311-333, May.
    11. Giovanni Marin & Francesca Lotti, 2017. "Productivity effects of eco-innovations using data on eco-patents," Industrial and Corporate Change, Oxford University Press, vol. 26(1), pages 125-148.
    12. Popp, David, 2012. "The role of technological change in green growth," Policy Research Working Paper Series 6239, The World Bank.
    13. 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.
    14. David Popp, 2012. "The Role of Technological Change in Green Growth," NBER Working Papers 18506, National Bureau of Economic Research, Inc.
    15. Fabrizi, Andrea & Guarini, Giulio & Meliciani, Valentina, 2018. "Green patents, regulatory policies and research network policies," Research Policy, Elsevier, vol. 47(6), pages 1018-1031.
    16. Hille, Erik & Althammer, Wilhelm & Diederich, Henning, 2020. "Environmental regulation and innovation in renewable energy technologies: Does the policy instrument matter?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    17. Philippe Aghion & Antoine Dechezleprêtre & David Hémous & Ralf Martin & John Van Reenen, 2016. "Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 1-51.
    18. Valeria Costantini & Francesco Crespi, 2013. "Public policies for a sustainable energy sector: regulation, diversity and fostering of innovation," Journal of Evolutionary Economics, Springer, vol. 23(2), pages 401-429, April.
    19. Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2021. "Firms’ growth, green gazelles and eco-innovation: evidence from a sample of European firms," Small Business Economics, Springer, vol. 56(4), pages 1721-1738, April.
    20. Faria, Lourenço Galvão Diniz & Andersen, Maj Munch, 2017. "Sectoral patterns versus firm-level heterogeneity - The dynamics of eco-innovation strategies in the automotive sector," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 266-281.

    More about this item

    Keywords

    energy efficiency; policy mix; residential sector.;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:srt:wpaper:1914. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alessandro Palma (email available below). General contact details of provider: http://www.sustainability-seeds.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.