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Environmental policies, product market regulation and innovation in renewable energy

Author

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  • Lionel Nesta

    (Observatoire français des conjonctures économiques)

  • Francesco Vona

    (Observatoire français des conjonctures économiques)

  • Francesco Nicolli

    (Facoltà di Economia (Faculty of Economics))

Abstract

We investigate the effectiveness of policies in favor of innovation in renewable energy under different levels of competition. Using information regarding renewable energy policies, product market regulation and high-quality green patents for OECD countries since the late 1970s, we develop a pre-sample mean count-data econometric specification that also accounts for the endogeneity of policies. We found that renewable energy policies are significantly more effective in fostering green innovation in countries with deregulated energy markets. We also found that public support for renewable energy is crucial only in the generation of high-quality green patents, whereas competition enhances the generation of green patents irrespective of their quality.

Suggested Citation

  • Lionel Nesta & Francesco Vona & Francesco Nicolli, 2012. "Environmental policies, product market regulation and innovation in renewable energy," Sciences Po publications 2012-25, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/f6h8764enu2lskk9p4oq2cqb0
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    Cited by:

    1. Francesco Vona & Francesco Nicolli, 2013. "Energy market liberalisation and renewable energy policies in OECD countries," Working Papers hal-00973070, HAL.
    2. Christian Growitsch & Marcus Stronzik, 2014. "Ownership unbundling of natural gas transmission networks: empirical evidence," Journal of Regulatory Economics, Springer, vol. 46(2), pages 207-225, October.
    3. Valentina Bosetti & Elena Verdolini, 2013. "Clean and Dirty International Technology Diffusion," Working Papers 2013.43, Fondazione Eni Enrico Mattei.
    4. Victoria Shestalova & Chiara Criscuolo & Nick Johnstone & Carlo Menon, 2014. "Renewable energy policies and cross-border investment: evidence from M&A in solar and wind energy," CPB Discussion Paper 288, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Natalia Zugravu-Soilita, 2017. "How does Foreign Direct Investment Affect Pollution? Toward a Better Understanding of the Direct and Conditional Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(2), pages 293-338, February.

    More about this item

    Keywords

    renewable energy technology; patents; environmental policies; product market regulation; policy complementarity;

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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