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Is there a relationship between public expenditures in energy R&D and carbon emissions per GDP? An empirical investigation

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  • Garrone, Paola
  • Grilli, Luca

Abstract

Energy innovation plays a crucial role in the reduction of carbon emissions. In order to design climate and energy policies that promote the development, deployment and diffusion of new energy technologies, policy makers not only require a theoretical understanding of the energy innovation system, but also empirical evidence of the effects that policy actions have had. This paper focuses on public energy R&D, a traditional and controversial option among the various climate technology policies, and empirically analyses its relationship with carbon emissions per GDP (i.e. carbon intensity) and its two components: energy intensity and the carbon factor. Evidence of the causality links that have prevailed in 13 advanced economies over the 1980-2004 period has been obtained through dynamic panel models. Our findings confirm that government R&D spending is not sufficient by itself to boost the energy innovation process. Public energy R&D has been successful in improving energy efficiency at country level, but it has failed to have a significant impact on the carbon factor and carbon intensity. At the same time the formation of energy R&D budgets is found to be significantly affected by carbon trends.

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  • Garrone, Paola & Grilli, Luca, 2010. "Is there a relationship between public expenditures in energy R&D and carbon emissions per GDP? An empirical investigation," Energy Policy, Elsevier, vol. 38(10), pages 5600-5613, October.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:10:p:5600-5613
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    Cited by:

    1. Inglesi-Lotz, Roula, 2017. "Social rate of return to R&D on various energy technologies: Where should we invest more? A study of G7 countries," Energy Policy, Elsevier, vol. 101(C), pages 521-525.
    2. Bointner, Raphael, 2014. "Innovation in the energy sector: Lessons learnt from R&D expenditures and patents in selected IEA countries," Energy Policy, Elsevier, vol. 73(C), pages 733-747.
    3. Zhaohua Wang & Zhongmin Yang & Yixiang Zhang, 2012. "Relationships between energy technology patents and CO2 emissions in China: An empirical study," CEEP-BIT Working Papers 34, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    4. repec:eee:energy:v:145:y:2018:i:c:p:388-399 is not listed on IDEAS
    5. Russell Thomson & Elizabeth Webster, 2012. "The Design of R & D Support Schemes for Industry," Economic Papers, The Economic Society of Australia, vol. 31(4), pages 464-477, December.
    6. repec:gam:jsusta:v:9:y:2017:i:4:p:617-:d:95887 is not listed on IDEAS
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    8. D’Amelio, Matilde & Garrone, Paola & Piscitello, Lucia, 2016. "Can Multinational Enterprises Light up Developing Countries?," World Development, Elsevier, vol. 88(C), pages 12-32.
    9. repec:eee:appene:v:196:y:2017:i:c:p:199-207 is not listed on IDEAS
    10. Nardi, Paolo, 2012. "Transmission network unbundling and grid investments: Evidence from the UCTE countries," Utilities Policy, Elsevier, vol. 23(C), pages 50-58.
    11. Wang, Zhaohua & Yang, Zhongmin & Zhang, Yixiang & Yin, Jianhua, 2012. "Energy technology patents–CO2 emissions nexus: An empirical analysis from China," Energy Policy, Elsevier, vol. 42(C), pages 248-260.
    12. Jonas Sonnenschein, 2016. "Understanding indicator choice for the assessment of research, development, and demonstration financing of low-carbon energy technologies: Lessons from the Nordic countries," WIDER Working Paper Series 048, World Institute for Development Economic Research (UNU-WIDER).
    13. Grafström, Jonas & Söderholm, Patrik & Gawel, Erik & Lehmann, Paul & Strunz, Sebastian, 2017. "Knowledge Accumulation from Public Renewable Energy R&D in the European Union: Converging or Diverging Trends?," Ratio Working Papers 292, The Ratio Institute.
    14. Raphael Bointner & Simon Pezzutto & Wolfram Sparber, 2016. "Scenarios of public energy research and development expenditures: financing energy innovation in Europe," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 5(4), pages 470-488, July.
    15. repec:eee:energy:v:148:y:2018:i:c:p:662-675 is not listed on IDEAS

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