Environmental policy and directed technological change: evidence from the European carbon market
Calel, R. & Dechezlepretre, A.
(2016).
Environmental policy and directed technological change: evidence from the European carbon market.
Review of Economics and Statistics,
98(1), 173 - 191.
https://doi.org/10.1162/REST_a_00470
This paper investigates the impact of the European Union Emissions Trading System (EU ETS) on technological change, exploiting installations-level inclusion criteria to estimate the System's causal impact on firms' patenting. We find that the EU ETS has increased low-carbon innovation among regulated firms by as much as 10%, while not crowding out patenting for other technologies. We also find evidence that the EU ETS has not impacted patenting beyond the set of regulated companies. These results imply that the EU ETS accounts for nearly a 1% increase in European low-carbon patenting compared to a counterfactual scenario.
| Item Type | Article |
|---|---|
| Copyright holders | © 2016 the President and Fellows of Harvard College and the Massachusetts Institute of Technology |
| Departments |
LSE > Research Centres > Grantham Research Institute LSE > Research Centres > Centre for Economic Performance |
| DOI | 10.1162/REST_a_00470 |
| Date Deposited | 14 Jul 2015 |
| URI | https://researchonline.lse.ac.uk/id/eprint/62723 |
Explore Further
- C14 - Semiparametric and Nonparametric Methods
- O3 - Technological Change; Research and Development
- Q55 - Technological Innovation
- Q58 - Government Policy
- https://www.scopus.com/pages/publications/84960101240 (Scopus publication)
- http://www.mitpressjournals.org/ (Official URL)
- Dechezlepretre, A. & Calel, R. (2015). Replication data for: Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market. [Dataset]. Harvard Dataverse. https://doi.org/10.7910/dvn/28549