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Thinking the green transition: evidence from the automotive industry

Author

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  • Andrea Orame

    (Bank of Italy)

  • Daniele Pianeselli

    (Bank of Italy)

Abstract

We study the European automotive industry in the 2013-2018 period. Volkswagen's Dieselgate scandal and the Paris Agreement, both in 2015, substantially caused a technological shock prompting firms to produce low-emissions cars. By using patent and mergers and acquisitions (M&A) data, we test how firms reacted to that shock. We provide evidence that Italian firms intensified their internal R&D activity but, unlike the rest of Europe, they did not increase their M&A activity. This can potentially reduce the speed of the green transition of Italian firms to the advantage of their competitors.

Suggested Citation

  • Andrea Orame & Daniele Pianeselli, 2023. "Thinking the green transition: evidence from the automotive industry," Questioni di Economia e Finanza (Occasional Papers) 767, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_767_23
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2023-0767/QEF_767_23.pdf
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    References listed on IDEAS

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    Cited by:

    1. Gaetano Basso & Fabrizio Colonna & Domenico Depalo & Graziella Mendicino, 2023. "The Green Transition and the Italian labour market," Questioni di Economia e Finanza (Occasional Papers) 811, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    automotive; green transition; technical change; mergers and acquisitions; innovation; patents; electric car;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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