IDEAS home Printed from https://ideas.repec.org/p/sru/ssewps/2021-08.html
   My bibliography  Save this paper

Green technologies, complementarities, and policy

Author

Listed:
  • Nicolo Barbieri

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

  • Alberto Marzucchi

    (Gran Sasso Science Institute, Social Sciences, L’Aquila, Italy)

  • Ugo Rizzo

    (Department of Mathematics and Computer Science, University of Ferrara, Ferrara, Italy)

Abstract

The present study explores the technological complementarities between green and non green inventions. First, we look at whether inventive activities in climate-friendly domains de pend on patenting in related technological domains that are not green. Based on patent data filed over the 1978–2014 period, we estimate a spatial autoregressive model using co-occurrence matrices to capture technological interdependencies. Our first finding highlights that the develop ment of green technologies strongly relies on advances in other green and in particular non-green technological domains, whose relevance for the green economy is usually neglected. Building on this insight, we detect the non-green complementary technologies that co-occur with green ones and assess whether environmental policies affect this particular instantiation of technologies at the country level. The results of the instrumental variable approach confirm that while envi ronmental policies spur green patenting, they do not displace the development of the non-green technological pillars upon which green inventions develop.

Suggested Citation

  • Nicolo Barbieri & Alberto Marzucchi & Ugo Rizzo, 2021. "Green technologies, complementarities, and policy," SPRU Working Paper Series 2021-08, SPRU - Science Policy Research Unit, University of Sussex Business School.
  • Handle: RePEc:sru:ssewps:2021-08
    as

    Download full text from publisher

    File URL: https://www.sussex.ac.uk/business-school/documents/swps-2021-08.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dechezlepretre, Antoine & Martin, Ralf & Mohnen, Myra, 2014. "Knowledge spillovers from clean and dirty technologies," LSE Research Online Documents on Economics 60501, London School of Economics and Political Science, LSE Library.
    2. 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.
    3. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
    4. Nicholas Bloom & John Van Reenen & Heidi Williams, 2019. "A toolkit of policies to promote innovation," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 10.
    5. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    6. Nicolò Barbieri & Claudia Ghisetti & Marianna Gilli & Giovanni Marin & Francesco Nicolli, 2016. "A Survey Of The Literature On Environmental Innovation Based On Main Path Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 596-623, July.
    7. repec:hal:spmain:info:hdl:2441/2qaasbmk6u8cj8maoa30ls1roi is not listed on IDEAS
    8. Nick Johnstone & Ivan Hačič & Margarita Kalamova, 2010. "Environmental Policy Characteristics and Technological Innovation," Economia politica, Società editrice il Mulino, issue 2, pages 277-302.
    9. Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2005. "Market Value and Patent Citations," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 16-38, Spring.
    10. Philippe Aghion & Ufuk Akcigit & Antonin Bergeaud & Richard Blundell & David Hemous, 2019. "Innovation and Top Income Inequality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 1-45.
    11. Philippe Aghion & Antoine Dechezleprêtre & David Hémous & Ralf Martin & John Van Reenen, 2016. "Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 1-51.
    12. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
    13. Ariél Pakes & Zvi Griliches, 1984. "Estimating Distributed Lags in Short Panels with an Application to the Specification of Depreciation Patterns and Capital Stock Constructs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 51(2), pages 243-262.
    14. Wayne B. Gray & Ronald J. Shadbegian, 1998. "Environmental Regulation, Investment Timing, and Technology Choice," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 235-256, June.
    15. Dani Rodrik, 2014. "Green industrial policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 30(3), pages 469-491.
    16. Florian Seliger & Gaéran de Rassenfosse & Jan Kozak, 2019. "Geocoding of worldwide patent data," KOF Working papers 19-458, KOF Swiss Economic Institute, ETH Zurich.
    17. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    18. Anton Pichler & Franc{c}ois Lafond & J. Doyne Farmer, 2020. "Technological interdependencies predict innovation dynamics," Papers 2003.00580, arXiv.org.
    19. Barbieri, Nicolò, 2016. "Fuel prices and the invention crowding out effect: Releasing the automotive industry from its dependence on fossil fuel," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 222-234.
    20. Nesta, Lionel & Verdolini, Elena & Vona, Francesco, 2018. "Threshold Policy Effects and Directed Technical Change in Energy Innovation," CSI: Climate and Sustainable Innovation 268731, Fondazione Eni Enrico Mattei (FEEM).
    21. David Popp, 2019. "Environmental Policy and Innovation: A Decade of Research," NBER Working Papers 25631, National Bureau of Economic Research, Inc.
    22. James P. Lesage, 2008. "An Introduction to Spatial Econometrics," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 19-44.
    23. Enrico Botta & Tomasz Koźluk, 2014. "Measuring Environmental Policy Stringency in OECD Countries: A Composite Index Approach," OECD Economics Department Working Papers 1177, OECD Publishing.
    24. José Luis Montiel Olea & Carolin Pflueger, 2013. "A Robust Test for Weak Instruments," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 31(3), pages 358-369, July.
    25. Raphael Calel, 2020. "Adopt or Innovate: Understanding Technological Responses to Cap-and-Trade," American Economic Journal: Economic Policy, American Economic Association, vol. 12(3), pages 170-201, August.
    26. ., 2020. "The environmental policy context: issues and challenges," Chapters, in: Tax Expenditures and Environmental Policy, chapter 3, pages 48-79, Edward Elgar Publishing.
    27. Olsson, Ola & Frey, Bruno S, 2002. "Entrepreneurship as Recombinant Growth," Small Business Economics, Springer, vol. 19(2), pages 69-80, September.
    28. Raphael Calel & Antoine Dechezleprêtre, 2016. "Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market," The Review of Economics and Statistics, MIT Press, vol. 98(1), pages 173-191, March.
    29. David Popp, 2019. "Environmental policy and innovation: a decade of research," CESifo Working Paper Series 7544, CESifo.
    30. Marchese, Carla & Marsiglio, Simone & Privileggi, Fabio & Ramello, Giovanni B., 2019. "Endogenous Recombinant Growth And Intellectual Property Rights," Macroeconomic Dynamics, Cambridge University Press, vol. 23(5), pages 2035-2067, July.
    31. Federico Belotti & Gordon Hughes & Andrea Piano Mortari, 2017. "Spatial panel-data models using Stata," Stata Journal, StataCorp LP, vol. 17(1), pages 139-180, March.
    32. Coram, Alex & Katzner, Donald W., 2018. "Reducing fossil-fuel emissions: Dynamic paths for alternative energy-producing technologies," Energy Economics, Elsevier, vol. 70(C), pages 179-189.
    33. Pistorius, C. W. I. & Utterback, J. M., 1997. "Multi-mode interaction among technologies," Research Policy, Elsevier, vol. 26(1), pages 67-84, March.
    34. Cem Ertur & Wilfried Koch, 2007. "Growth, technological interdependence and spatial externalities: theory and evidence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(6), pages 1033-1062.
    35. Lee Fleming, 2001. "Recombinant Uncertainty in Technological Search," Management Science, INFORMS, vol. 47(1), pages 117-132, January.
    36. 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.
    37. Popp, David, 2019. "Environmental Policy and Innovation: A Decade of Research," International Review of Environmental and Resource Economics, now publishers, vol. 13(3-4), pages 265-337, September.
    38. Popp, David, 2004. "ENTICE: endogenous technological change in the DICE model of global warming," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 742-768, July.
    39. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2020. "Knowledge sources and impacts on subsequent inventions: Do green technologies differ from non-green ones?," Research Policy, Elsevier, vol. 49(2).
    40. Noailly, Joëlle & Smeets, Roger, 2015. "Directing technical change from fossil-fuel to renewable energy innovation: An application using firm-level patent data," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 15-37.
    41. Verhoeven, Dennis & Bakker, Jurriën & Veugelers, Reinhilde, 2016. "Measuring technological novelty with patent-based indicators," Research Policy, Elsevier, vol. 45(3), pages 707-723.
    42. Fischer, Carolyn & Newell, Richard G., 2008. "Environmental and technology policies for climate mitigation," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 142-162, March.
    43. Popp, David & Newell, Richard, 2012. "Where does energy R&D come from? Examining crowding out from energy R&D," Energy Economics, Elsevier, vol. 34(4), pages 980-991.
    44. Gray, Wayne B & Shadbegian, Ronald J, 1998. "Environmental Regulation, Investment Timing, and Technology Choice," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 235-256, June.
    45. Sinsel, Simon R. & Markard, Jochen & Hoffmann, Volker H., 2020. "How deployment policies affect innovation in complementary technologies—evidence from the German energy transition," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    46. David L. Rigby, 2015. "Technological Relatedness and Knowledge Space: Entry and Exit of US Cities from Patent Classes," Regional Studies, Taylor & Francis Journals, vol. 49(11), pages 1922-1937, November.
    47. Isaiah Andrews & James H. Stock & Liyang Sun, 2019. "Weak Instruments in Instrumental Variables Regression: Theory and Practice," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 727-753, August.
    48. van der Zwaan, B. C. C. & Gerlagh, R. & G. & Klaassen & Schrattenholzer, L., 2002. "Endogenous technological change in climate change modelling," Energy Economics, Elsevier, vol. 24(1), pages 1-19, January.
    49. Sandén, Björn A. & Hillman, Karl M., 2011. "A framework for analysis of multi-mode interaction among technologies with examples from the history of alternative transport fuels in Sweden," Research Policy, Elsevier, vol. 40(3), pages 403-414, April.
    50. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
    51. J. Paul Elhorst, 2003. "Specification and Estimation of Spatial Panel Data Models," International Regional Science Review, , vol. 26(3), pages 244-268, July.
    52. Nicoló Barbieri & François Perruchas & Davide Consoli, 2020. "Specialization, Diversification, and Environmental Technology Life Cycle," Economic Geography, Taylor & Francis Journals, vol. 96(2), pages 161-186, March.
    53. Lionel Nesta & Elena Verdolini & Francesco Vona, 2018. "Threshold Policy Effects and Directed Technical Change in Energy Innovation," GREDEG Working Papers 2018-01, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    54. Taalbi, Josef, 2020. "Evolution and structure of technological systems - An innovation output network," Research Policy, Elsevier, vol. 49(8).
    55. Tsur, Yacov & Zemel, Amos, 2007. "Towards endogenous recombinant growth," Journal of Economic Dynamics and Control, Elsevier, vol. 31(11), pages 3459-3477, November.
    56. Goulder, Lawrence H. & Schneider, Stephen H., 1999. "Induced technological change and the attractiveness of CO2 abatement policies," Resource and Energy Economics, Elsevier, vol. 21(3-4), pages 211-253, August.
    57. Nick Johnstone & Ivan Haščič & Margarita Kalamova, 2010. "Environmental Policy Design Characteristics and Technological Innovation: Evidence from Patent Data," OECD Environment Working Papers 16, OECD Publishing.
    58. Markard, Jochen & Hoffmann, Volker H., 2016. "Analysis of complementarities: Framework and examples from the energy transition," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 63-75.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julia Mazzei & Tommaso Rughi & Maria Enrica Virgillito, 2023. "Knowing brown and inventing green? Incremental and radical innovative activities in the automotive sector," Industry and Innovation, Taylor & Francis Journals, vol. 30(7), pages 824-863, August.
    2. Fusillo, Fabrizio, 2023. "Green Technologies and diversity in the knowledge search and output phases: Evidence from European Patents," Research Policy, Elsevier, vol. 52(4).
    3. Nicolò Barbieri & Davide Consoli & Lorenzo Napolitano & François Perruchas & Emanuele Pugliese & Angelica Sbardella, 2023. "Regional technological capabilities and green opportunities in Europe," The Journal of Technology Transfer, Springer, vol. 48(2), pages 749-778, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2023. "Green technologies, interdependencies, and policy," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    2. David Popp, 2019. "Environmental Policy and Innovation: A Decade of Research," NBER Working Papers 25631, National Bureau of Economic Research, Inc.
    3. Lazkano, Itziar & Nøstbakken, Linda & Pelli, Martino, 2017. "From fossil fuels to renewables: The role of electricity storage," European Economic Review, Elsevier, vol. 99(C), pages 113-129.
    4. Grafström, Jonas & Poudineh, Rahmat, 2023. "No evidence of counteracting policy effects on European solar power invention and diffusion," Energy Policy, Elsevier, vol. 172(C).
    5. Massimiliano Mazzanti & Antonio Musolesi, 2020. "Modeling Green Knowledge Production and Environmental Policies with Semiparametric Panel Data Regression models," SEEDS Working Papers 1420, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Sep 2020.
    6. Perruchas, François & Consoli, Davide & Barbieri, Nicolò, 2020. "Specialisation, diversification and the ladder of green technology development," Research Policy, Elsevier, vol. 49(3).
    7. Rik L. Rozendaal & Herman R. J. Vollebergh, 2021. "Policy-Induced Innovation in Clean Technologies: Evidence from the Car Market," CESifo Working Paper Series 9422, CESifo.
    8. Raphael Calel & Antoine Dechezleprêtre, 2016. "Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market," The Review of Economics and Statistics, MIT Press, vol. 98(1), pages 173-191, March.
    9. Lazkano, Itziar & Pham, Linh, 2016. "Do Fossil fuel Taxes Promote Innovation in Renewable Electricity Generation?," Discussion Paper Series in Economics 16/2016, Norwegian School of Economics, Department of Economics.
    10. Brehm, Johannes & aus dem Moore, Nils & Gruhl, Henri, 2022. "Driving Innovation? – Carbon Tax Effects in the Swedish Transport Sector," VfS Annual Conference 2022 (Basel): Big Data in Economics 264085, Verein für Socialpolitik / German Economic Association.
    11. Massimiliano Mazzanti & Antonio Musolesi, 2020. "A Semiparametric Analysis of Green Inventions and Environmental Policies," SEEDS Working Papers 0920, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jun 2020.
    12. Li, Kai & Yan, Yaxue & Zhang, Xiaoling, 2021. "Carbon-abatement policies, investment preferences, and directed technological change: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    13. David Popp, 2019. "Environmental policy and innovation: a decade of research," CESifo Working Paper Series 7544, CESifo.
    14. Filippo Bontadini & Francesco Vona, 2023. "Anatomy of Green Specialisation: Evidence from EU Production Data, 1995–2015," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(3), pages 707-740, August.
    15. David Popp & Francesco Vona & Myriam Grégoire-Zawilski & Giovanni Marin, 2022. "The Next Wave of Energy Innovation: Which Technologies? Which Skills?," CESifo Working Paper Series 9878, CESifo.
    16. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2020. "Knowledge sources and impacts on subsequent inventions: Do green technologies differ from non-green ones?," Research Policy, Elsevier, vol. 49(2).
    17. Feng, Siyu & Lazkano, Itziar, 2022. "Innovation trends in electricity storage: What drives global innovation?," Energy Policy, Elsevier, vol. 167(C).
    18. Samant, Shantala & Thakur-Wernz, Pooja & Hatfield, Donald E., 2020. "Does the focus of renewable energy policy impact the nature of innovation? Evidence from emerging economies," Energy Policy, Elsevier, vol. 137(C).
    19. Chakraborty, Saptorshee Kanto & Mazzanti, Massimiliano, 2020. "Energy intensity and green energy innovation: Checking heterogeneous country effects in the OECD," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 328-343.
    20. Acemoglu, Daron & Rafey, Will, 2023. "Mirage on the horizon: Geoengineering and carbon taxation without commitment," Journal of Public Economics, Elsevier, vol. 219(C).

    More about this item

    Keywords

    Green technology; patent data; environmental policy; network-dependent innovation;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sru:ssewps:2021-08. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: University of Sussex Business School Communications Team (email available below). General contact details of provider: https://edirc.repec.org/data/spessuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.