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Policy stringency under the European Union Emission trading system and its impact on technological change in the energy sector

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  • Bel, Germà
  • Joseph, Stephan

Abstract

In this study, we use patent count data for overall Climate Change Mitigation Technologies, and for those related to energy production and distribution to evaluate the relationship between the sizable oversupply of European Union emissions Allowances and a policy shift marked by the transition from Phase I to Phase II under the European Union Emission Trading System, on the one hand, and on “green” patenting, on the other. According to our results, the expected negative impact of this oversupply on technological change seems to be confirmed. Thus, stakeholders take the actual supply of certificates into account when determining their innovative activity. In the same vein, they do so with respect to policy changes related to greater stringency, which generated a sizeable increase in patenting activity when controlling for other economic factors. Our results suggest that a critical evaluation of emission caps and allowances distribution must be undertaken.

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  • Bel, Germà & Joseph, Stephan, 2018. "Policy stringency under the European Union Emission trading system and its impact on technological change in the energy sector," Energy Policy, Elsevier, vol. 117(C), pages 434-444.
    • Handle: RePEc:eee:enepol:v:117:y:2018:i:c:p:434-444
    DOI: 10.1016/j.enpol.2018.03.041
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    11. Yan Xiao & Yan Zhang & Jiekuan Zhang, 2023. "The Impact of Carbon Emission Trading on Industrial Green Total Factor Productivity," Sustainability, MDPI, vol. 15(7), pages 1-18, April.
    12. Teixidó, Jordi & Verde, Stefano F. & Nicolli, Francesco, 2019. "The impact of the EU Emissions Trading System on low-carbon technological change: The empirical evidence," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    13. Chen, Xing & Lin, Boqiang, 2021. "Towards carbon neutrality by implementing carbon emissions trading scheme: Policy evaluation in China," Energy Policy, Elsevier, vol. 157(C).
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    17. Serkan ÇINAR & Mine YILMAZER, 2021. "Determinants of Green Technologies in Developing Countries," Isletme ve Iktisat Calismalari Dergisi, Econjournals, vol. 9(2), pages 155-167.
    18. Xiaowen Wang & Shuting Wang & Yunsheng Zhang, 2022. "The Impact of Environmental Regulation and Carbon Emissions on Green Technology Innovation from the Perspective of Spatial Interaction: Empirical Evidence from Urban Agglomeration in China," Sustainability, MDPI, vol. 14(9), pages 1-19, April.
    19. Li, Kai & Yan, Yaxue & Zhang, Xiaoling, 2021. "Carbon-abatement policies, investment preferences, and directed technological change: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    20. Jarosław Kaczmarek & Konrad Kolegowicz & Wojciech Szymla, 2022. "Restructuring of the Coal Mining Industry and the Challenges of Energy Transition in Poland (1990–2020)," Energies, MDPI, vol. 15(10), pages 1-48, May.
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    22. Wenjuan Tu & Rui Shi, 2022. "Influence of Environmental Regulation on the International Competitiveness of the High-Tech Industry: Evidence from China," Sustainability, MDPI, vol. 15(1), pages 1-15, December.
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    More about this item

    Keywords

    Q55; Q58; O33; O38; Environmental policy; Emission trading system; Policy stringency; Technological change; Patent count data; Energy sector;
    All these keywords.

    JEL classification:

    • 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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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