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Innovation Effects of Energy Policy Instruments in Germany

Author

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  • Rainer Walz

    (Fh-ISI (Fraunhofer-Inst. for Systems and Innovation Research), Karlsruhe, Germany)

Abstract

Standard environmental economics predicts that market-based policy instruments have a much more positive influence on innovation than command and control policies which are classified as hampering innovations. However, the environmental policy analysis approach from political science downplays the role of policy instruments and stresses the importance of other factors. Against this theoretical background, the paper presents the results of two case studies which analysed the effects of command and control policies in the heating sector. Based on these empirical findings, first conclusions are drawn about the role of energy policy instruments in shaping innovation.

Suggested Citation

  • Rainer Walz, 2004. "Innovation Effects of Energy Policy Instruments in Germany," Energy & Environment, , vol. 15(2), pages 249-260, March.
    • Handle: RePEc:sae:engenv:v:15:y:2004:i:2:p:249-260
    DOI: 10.1260/095830504323153441
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    References listed on IDEAS

    as
    1. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 941-975.
    2. Lundvall, Bengt-Ake & Johnson, Bjorn & Andersen, Esben Sloth & Dalum, Bent, 2002. "National systems of production, innovation and competence building," Research Policy, Elsevier, vol. 31(2), pages 213-231, February.
    3. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
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