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Patent Protection and the Transition to Clean Technology

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  • Maria Alsina-Pujols
  • Isabel Hovdahl

Abstract

We analyze the use of patent protection as a new policy to direct technical change to clean technology. Contrary to popular belief, it is dirty (and not clean) innovations that should be excluded from patent protection to reduce emissions. In the short run, removing patent protection on dirty technology increases emissions. However, the reduced markup on dirty technology can induce clean innovation, reducing emissions in the long run. We use a general equilibrium model to show both analytically and numerically that removing patent protection on dirty technology can indeed promote the energy transition and reduce the cost of mitigating climate change.

Suggested Citation

  • Maria Alsina-Pujols & Isabel Hovdahl, 2025. "Patent Protection and the Transition to Clean Technology," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 12(4), pages 807-836.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/732482
    DOI: 10.1086/732482
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