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The Impact of Energy Prices on Green Innovation

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Abstract

Based on patent data and industry specific energy prices for 18 OECD countries over 30 years we investigate on an industry level the impact of energy prices on green innovation activities. Our econometric models show that energy prices and green innovation activities are positively related and that energy prices have a significantly positive impact on the share of green innovations in non-green innovations. More concretely, our main model shows that a 10% increase of the average energy prices of the previous five years results in a 2.7% and 4.5% increase of the number of green innovations and the share of green innovations in non-green innovations, respectively. We also find that the impact of energy prices increases with an increasing lag between energy prices and innovation activities. Robustness tests confirm the main results.

Suggested Citation

  • Marius Ley & Tobias Stucki & Martin Woerter, 2013. "The Impact of Energy Prices on Green Innovation," KOF Working papers 13-340, KOF Swiss Economic Institute, ETH Zurich.
  • Handle: RePEc:kof:wpskof:13-340
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    File URL: http://dx.doi.org/10.3929/ethz-a-009922725
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    Cited by:

    1. Mohn, Klaus, 2016. "Undressing the emperor: A critical review of IEA’s WEO," UiS Working Papers in Economics and Finance 2016/6, University of Stavanger.
    2. repec:gam:jsusta:v:9:y:2017:i:6:p:872-:d:99388 is not listed on IDEAS
    3. Giovanni Marin & Francesco Vona, 2017. "The Impact of Energy Prices on Employment and Environmental Performance: Evidence from French Manufacturing Establishments," Working Papers 2017.53, Fondazione Eni Enrico Mattei.
    4. Rammer, Christian & Gottschalk, Sandra & Peneder, Michael & Wörter, Martin & Stucki, Tobias & Arvanitis, Spyros, 2017. "Does energy policy hurt international competitiveness of firms? A comparative study for Germany, Switzerland and Austria," Energy Policy, Elsevier, vol. 109(C), pages 154-180.
    5. repec:eee:enepol:v:114:y:2018:i:c:p:245-261 is not listed on IDEAS
    6. repec:gam:jsusta:v:9:y:2017:i:6:p:1011-:d:101238 is not listed on IDEAS
    7. Spyros Arvanitis & Michael Peneder & Christian Rammer & Tobias Stucki & Martin Wörter, 2016. "How Different Policy Instruments Affect the Creation of Green Energy Innovation: A Differentiated Perspective," KOF Working papers 16-417, KOF Swiss Economic Institute, ETH Zurich.

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    Keywords

    Innovation; Environment; Energy prices;

    JEL classification:

    • F0 - International Economics - - General

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