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Energy prices, technological knowledge and green energy innovation: A dynamic panel analysis of patent counts

Author

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  • Kruse, Juergen

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln)

  • Wetzel, Heike

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln)

Abstract

We examine the effect of energy prices and technological knowledge on innovation in green energy technologies. In doing so, we consider both demand-pull effects, which induce innovative activity by increasing the expected value of innovations, and technology-push effects, which drive innovative activity by extending the technological capability of an economy. Our analysis is conducted using patent data from the European Patent Office on a panel of 26 OECD countries over the period 1978-2009. Utilizing a dynamic count data model for panel data, we analyze 11 distinct green energy technologies. Our results indicate that the existing knowledge stock is a significant driver of green energy innovation for all technologies. Furthermore, the results suggest that energy prices have a positive impact on innovation for some but not all technologies and that the effect of energy prices and technological knowledge on green energy innovation becomes more pronounced after the Kyoto protocol agreement in 1997.

Suggested Citation

  • Kruse, Juergen & Wetzel, Heike, 2014. "Energy prices, technological knowledge and green energy innovation: A dynamic panel analysis of patent counts," EWI Working Papers 2014-12, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    • Handle: RePEc:ris:ewikln:2014_012
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    References listed on IDEAS

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    Cited by:

    1. Tobias Wendler & Daniel Töbelmann & Jutta Günther, 2019. "Natural resources and technology - on the mitigating effect of green tech," Bremen Papers on Economics & Innovation 1905, University of Bremen, Faculty of Business Studies and Economics.
    2. Tobias Wendler, 2019. "About the Relationship Between Green Technology and Material Usage," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1383-1423, November.
    3. Guillaume Bourgeois & Sandrine Mathy & Philippe Menanteau, 2017. "The effect of climate policies on renewable energies : a review of econometric studies [L’effet des politiques climatiques sur les énergies renouvelables : une revue des études économétriques]," Post-Print hal-01585906, HAL.
    4. Johanna Vogel & Kurt Kratena & Kathrin Hranyai, 2015. "The Bias of Technological Change in Europe. WWWforEurope Working Paper No. 98," WIFO Studies, WIFO, number 58200, April.
    5. Wendler, Tobias & Töbelmann, Daniel & Günther, Jutta, 2021. "Natural resources and technology - on the mitigating effect of green tech," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242416, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    Green energy technologies; innovation; patents; demand-pull; technology-push; dynamic count data model;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • 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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