Low-carbon innovation is up in Europe, but not because of the EU Emissions Trading Scheme

Since the introduction of the EU’s Emissions Trading Scheme (ETS), there has been a surge in low carbon technology. Yet, Raphael Calel and Antoine Dechezleprêtre argue that this increase in low carbon innovation has not been a result of the ETS. Their research indicates there is actually little difference in patenting rates for low carbon technologies between countries that are and are not part of the scheme.