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Energy security and climate change: How oil endowment influences alternative vehicle innovation


  • Kim, Jung Eun


Fast growing global energy needs raise concerns on energy supply security and climate change. Although policies addressing the two issues sometimes benefit one at the expense of the other, technology innovation, especially in alternative energy, provides a win–win solution to tackle both issues. This paper examines the effect of oil endowment on the patterns of technology innovation in the transportation sector, attempting to identify drivers of technology innovation in alternative energy. The analysis employs panel data constructed from patent data on five different types of automobile-related technologies from 1990 to 2002: oil extraction, petroleum refining, fuel cells, electric and hybrid vehicles (EHV) and vehicle energy efficiency. I find that countries with larger oil endowments perform less innovation on refining and alternative technologies. Conversely, higher gasoline prices positively impact the patent counts of alternative technologies and energy efficiency technology. The findings highlight the challenges and importance of policy designs in international climate change agreements.

Suggested Citation

  • Kim, Jung Eun, 2014. "Energy security and climate change: How oil endowment influences alternative vehicle innovation," Energy Policy, Elsevier, vol. 66(C), pages 400-410.
  • Handle: RePEc:eee:enepol:v:66:y:2014:i:c:p:400-410 DOI: 10.1016/j.enpol.2013.11.011

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    References listed on IDEAS

    1. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2003. "Chapter 11 Technological change and the environment," Handbook of Environmental Economics,in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 11, pages 461-516 Elsevier.
    2. Popp, David & Newell, Richard G. & Jaffe, Adam B., 2010. "Energy, the Environment, and Technological Change," Handbook of the Economics of Innovation, Elsevier.
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    5. Fischer, Carolyn & Newell, Richard G., 2008. "Environmental and technology policies for climate mitigation," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 142-162, March.
    6. 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.
    7. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April.
    8. 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.
    9. David L. Greene, 1990. "CAFE OR PRICE?: An Analysis of the Effects of Federal Fuel Economy Regulations and Gasoline Price on New Car MPG, 1978-89," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 37-58.
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    11. 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.
    12. 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.
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