IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v33y2011i4p648-662.html
   My bibliography  Save this article

Technology and the diffusion of renewable energy

Author

Listed:
  • Popp, David
  • Hascic, Ivan
  • Medhi, Neelakshi

Abstract

We consider investment in wind, solar photovoltaic, geothermal, and electricity from biomass and waste across 26 OECD countries from 1991 to 2004. Using the PATSTAT database, we obtain a comprehensive list of patents for each of these technologies throughout the world, which we use to assess the impact of technological change on investment in renewable energy capacity. We consider four alternative methods for counting patents, using two possible filters: weighting patents by patent family size and including only patent applications filed in multiple countries. For each patent count, we create knowledge stocks representing the global technological frontier. We find that technological advances do lead to greater investment, but the effect is small. Investments in other carbon-free energy sources, such as hydropower and nuclear power, serve as substitutes for renewable energy. Comparing the effectiveness of our four patent counts, we find that both using only patents filed in multiple countries and weighting by family size improve the fit of the model.

Suggested Citation

  • Popp, David & Hascic, Ivan & Medhi, Neelakshi, 2011. "Technology and the diffusion of renewable energy," Energy Economics, Elsevier, vol. 33(4), pages 648-662, July.
    • Handle: RePEc:eee:eneeco:v:33:y:2011:i:4:p:648-662
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988310001283
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carraro, Carlo & Bosetti, Valentina & Massetti, Emanuele & Tavoni, Massimo, 2007. "Optimal Energy Investment and R&D Strategies to Stabilise Greenhouse Gas Atmospheric Concentrations," CEPR Discussion Papers 6549, C.E.P.R. Discussion Papers.
    2. Lori D. Snyder & Nolan H. Miller & Robert N. Stavins, 2003. "The Effects of Environmental Regulation on Technology Diffusion: The Case of Chlorine Manufacturing," American Economic Review, American Economic Association, vol. 93(2), pages 431-435, May.
    3. 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.
    4. Michael I. Cragg & Yuyu Zhou & Kevin Gurney & Matthew E. Kahn, 2013. "Carbon Geography: The Political Economy Of Congressional Support For Legislation Intended To Mitigate Greenhouse Gas Production," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1640-1650, April.
    5. McDonald, Alan & Schrattenholzer, Leo, 2001. "Learning rates for energy technologies," Energy Policy, Elsevier, vol. 29(4), pages 255-261, March.
    6. Valentina Bosetti & David Tomberlin, 2004. "Fondazione Eni Enrico Mattei," Working Papers 2004.102, Fondazione Eni Enrico Mattei.
    7. 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.
    8. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
    9. Wayne B. Gray & Ronald J. Shadbegian, 1998. "Environmental Regulation, Investment Timing, and Technology Choice," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 235-256, June.
    10. Janusz A. Ordover, 1991. "A Patent System for Both Diffusion and Exclusion," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 43-60, Winter.
    11. Agnolucci, Paolo, 2006. "Use of economic instruments in the German renewable electricity policy," Energy Policy, Elsevier, vol. 34(18), pages 3538-3548, December.
    12. Cohen, Wesley M. & Goto, Akira & Nagata, Akiya & Nelson, Richard R. & Walsh, John P., 2002. "R&D spillovers, patents and the incentives to innovate in Japan and the United States," Research Policy, Elsevier, vol. 31(8-9), pages 1349-1367, December.
    13. repec:bla:jindec:v:46:y:1998:i:2:p:235-56 is not listed on IDEAS
    14. David Popp, 2010. "Exploring Links Between Innovation and Diffusion: Adoption of NO X Control Technologies at US Coal-fired Power Plants," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(3), pages 319-352, March.
    15. Hélène Dernis & Mosahid Khan, 2004. "Triadic Patent Families Methodology," OECD Science, Technology and Industry Working Papers 2004/2, OECD Publishing.
    16. David Popp, 2003. "Pollution control innovations and the Clean Air Act of 1990," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(4), pages 641-660.
    17. Eaton, Jonathan & Kortum, Samuel, 1999. "International Technology Diffusion: Theory and Measurement," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 537-570, August.
    Full references (including those not matched with items on IDEAS)

    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. 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).
    2. Francesco Vona & Francesco Nicolli & Lionel Nesta, 2012. "Determinants of renewable energy innovation: environmental policies vs. market regulation," Sciences Po publications 2012-05, Sciences Po.
    3. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09j0h0ji242 is not listed on IDEAS
    4. repec:hal:wpspec:info:hdl:2441/eu4vqp9ompqllr09j0h0ji242 is not listed on IDEAS
    5. Popp, David & Newell, Richard G. & Jaffe, Adam B., 2010. "Energy, the Environment, and Technological Change," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 873-937, Elsevier.
    6. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09j0h0ji242 is not listed on IDEAS
    7. 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.
    8. Yao, Shiyue & Yu, Xueying & Yan, Sen & Wen, Shiyan, 2021. "Heterogeneous emission trading schemes and green innovation," Energy Policy, Elsevier, vol. 155(C).
    9. Rennings, Klaus & Rexhäuser, Sascha, 2010. "Long-term impacts of environmental policy and eco-innovative activities of firms," ZEW Discussion Papers 10-074, ZEW - Leibniz Centre for European Economic Research.
    10. Felix Groba & Barbara Breitschopf, 2013. "Impact of Renewable Energy Policy and Use on Innovation: A Literature Review," Discussion Papers of DIW Berlin 1318, DIW Berlin, German Institute for Economic Research.
    11. Nicolli, Francesco & Vona, Francesco, 2016. "Heterogeneous policies, heterogeneous technologies: The case of renewable energy," Energy Economics, Elsevier, vol. 56(C), pages 190-204.
    12. Stefan Ambec & Mark A. Cohen & Stewart Elgie & Paul Lanoie, 2013. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(1), pages 2-22, January.
    13. 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.
    14. Wendler, Tobias & Töbelmann, Daniel & Günther, Jutta, 2021. "Natural resources and technology - on the mitigating effect of green tech," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242416, Verein für Socialpolitik / German Economic Association.
    15. Rexhäuser, Sascha & Rammer, Christian, 2011. "Unmasking the Porter hypothesis: Environmental innovations and firm-profitability," ZEW Discussion Papers 11-036, ZEW - Leibniz Centre for European Economic Research.
    16. Nesta, Lionel & Vona, Francesco & Nicolli, Francesco, 2014. "Environmental policies, competition and innovation in renewable energy," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 396-411.
    17. Cameron Hepburn & Jacquelyn Pless & David Popp, 2018. "Policy Brief—Encouraging Innovation that Protects Environmental Systems: Five Policy Proposals," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 154-169.
    18. Dekker, Thijs & Vollebergh, Herman R.J. & de Vries, Frans P. & Withagen, Cees A., 2012. "Inciting protocols," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 45-67.
    19. Rubashkina, Yana & Galeotti, Marzio & Verdolini, Elena, 2015. "Environmental regulation and competitiveness: Empirical evidence on the Porter Hypothesis from European manufacturing sectors," Energy Policy, Elsevier, vol. 83(C), pages 288-300.
    20. Gonseth, Camille & Cadot, Olivier & Mathys, Nicole A. & Thalmann, Philippe, 2015. "Energy-tax changes and competitiveness: The role of adaptive capacity," Energy Economics, Elsevier, vol. 48(C), pages 127-135.
    21. 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.
    22. Dechezlepretre, Antoine & Glachant, Matthieu & Hascic, Ivan & Johnstone, Nick & Meniere, Yann, 2009. "Invention and Transfer of Climate Change Mitigation Technologies on a Global Scale: A Study Drawing on Patent Data," Sustainable Development Papers 54361, Fondazione Eni Enrico Mattei (FEEM).
    23. Shuai Shao & Zhigao Hu & Jianhua Cao & Lili Yang & Dabo Guan, 2020. "Environmental Regulation and Enterprise Innovation: A Review," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1465-1478, March.

    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:eee:eneeco:v:33:y:2011:i:4:p:648-662. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    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.