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Towards a low carbon Europe: the role of technological change and environmental policies in European manufacturing sectors

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  • Marianna Gilli

    (Department of Economics and Management, University of Ferrara, Italy.)

Abstract

This paper aims to shed light on the role of environmental policies, technological change and their interaction, on CO2 emissions in Europe. Building on the literature, which studies the relationship between environmental performances and technological change, as well as the literature related to the effects of environmental policy, two hypothesis are framed: the first one is that both environmental policy and technological change have a negative effect on CO2 emissions level. The second one is that technological change and environmental policy are complementary determinants of a reduced CO2 level. Both a fixed effects model and IV model are applied. Results offer support to these hypothesis and highlight sectorial differences in policy and technology effects toward lower emissions levels.

Suggested Citation

  • Marianna Gilli, 2016. "Towards a low carbon Europe: the role of technological change and environmental policies in European manufacturing sectors," SEEDS Working Papers 0516, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Apr 2016.
    • Handle: RePEc:srt:wpaper:0516
    as

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    References listed on IDEAS

    as
    1. Lionel Nesta & Francesco Vona & Francesco Nicolli, 2012. "Environmental Policies, Product Market Regulation and Innovation in Renewable Energy," Working Papers 2012.90, Fondazione Eni Enrico Mattei.
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    3. William Robert Reed, 2015. "On the Practice of Lagging Variables to Avoid Simultaneity," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(6), pages 897-905, December.
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    5. Nesta, Lionel & Vona, Francesco & Nicolli, Francesco, 2014. "Environmental policies, competition and innovation in renewable energy," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 396-411.
    6. Popp, David & Newell, Richard G. & Jaffe, Adam B., 2010. "Energy, the Environment, and Technological Change," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 873-937, Elsevier.
    7. Adam Jaffe & Richard Newell & Robert Stavins, 2002. "Environmental Policy and Technological Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 41-70, June.
    8. Downing, Paul B. & White, Lawrence J., 1986. "Innovation in pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 13(1), pages 18-29, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    technological change; environmental policy; pollution emissions;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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