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Fiscal and Regulatory Instruments for Clean Technology Development in the European Union


  • Antoine Dechezleprêtre
  • David Popp


This policy note investigates whether the current level of public support to environment-friendly technologies is sufficient to allow European countries to respond to the multiple challenges posed by climate change and other environmental concerns. We first lay out the justifications for government support to clean R&D activity at the various stages of technology development, discussing particular features of clean technologies that justify policy intervention. We present empirical evidence for the impact of various policies on the development of clean technologies and use this to identify what the appropriate policy mix should look like. We present an overview of policies currently in place to support the development of clean technologies across Europe and compare the current policy landscape to the appropriate policy portfolio. This comparison allows us to provide some practical steps for reform.

Suggested Citation

  • Antoine Dechezleprêtre & David Popp, 2015. "Fiscal and Regulatory Instruments for Clean Technology Development in the European Union," CESifo Working Paper Series 5361, CESifo.
  • Handle: RePEc:ces:ceswps:_5361

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    Cited by:

    1. David Popp, 2015. "Using Scientific Publications to Evaluate Government R&D Spending: The Case of Energy," CESifo Working Paper Series 5442, CESifo.
    2. Marit E. Klemetsen, 2015. "The effects of innovation policies on firm level patenting," Discussion Papers 830, Statistics Norway, Research Department.
    3. Gramkow, Camila, 2020. "Green fiscal policies: An armoury of instruments to recover growth sustainably," Estudios y Perspectivas – Oficina de la CEPAL en Brasilia 5, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

    More about this item


    climate change; renewable energy; environmental policy; innovation; diffusion;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation


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