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Intra-Firm Diffusion of Green Energy Technologies and the Choice of Policy Instruments

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Environmental benefits only unfold if green (environmentally friendly) technologies are widely diffused and intensively deployed within a firm. We investigate how different types of policies - directly and in combination - affect the number of different green energy technologies adopted by a single firm (intra-firm diffusion). Using data from a dedicated survey on the diffusion of green energy technologies of 1200 Swiss firms and applying well-identified econometric models, we found that energy taxes are a very effective policy instrument for the intra-firm diffusion of green energy technologies. Even more important, however, are non-political measures that show the largest effect among all tested instruments. Additional analyses show that (a) time-consistency in policy making is more important for energy tax regimes than for regulations and (b) no evidence for complementarities between the policy types could be identified.

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File URL: http://dx.doi.org/10.3929/ethz-a-010692106
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Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 16-401.

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Length: 34 pages
Date of creation: Jan 2016
Handle: RePEc:kof:wpskof:16-401
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