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Abstract:
This paper examines the effect of the Kyoto Protocol on the international transfer of technologies relevant for climate change mitigation. The analysis is conducted using patent data on over 100 countries during a 20-year period 1985-2004. It is found that public policy plays a significant role in determining technology transfer. In particular, the degree of commitment and differences in the degree of commitment between pairs of Annex 1 countries has an effect on transfer. Transfers from Annex 1 countries to non-Annex 1 countries are significantly affected by involvement with the Clean Development Mechanism.

Environmental Policy, Innovation, Patents, Climate Change, Technological Change, Technology Transfer, Kyoto Protocol, Clean Development Mechanism

Abstract:
It has long been argued that the implementation of market-based environmental policy instruments such as environmentally-related taxes and tradable permits is likely to lead to greater technological innovation than more direct forms of regulation such as technology-based standards. One of the principle reasons for such an assertion is that they give firms greater "flexibility‟ to identify the optimal means of innovating to meet the given environmental objective. Thus, it can be argued that the benefits of (some) market-based instruments can also be true of well-designed performance standards. While the theoretical case for the use of flexible policy instruments is well-developed, empirical evidence remains limited. Drawing upon a database of patent applications from a cross-section of countries evidence is provided for the positive effect of "flexibility‟ of the domestic environmental policy regime on the propensity for the inventions induced to be diffused widely in the world economy. For a given level of policy stringency, countries with more flexible environmental policies are more likely to generate innovations which are diffused widely and are more likely to benefit from innovations generated elsewhere. And while the focus of this paper is on the specific case of environmental policy, the discussion is equally applicable to aspects of product and labour market regulation which have implications for technological innovation, such as product and workplace safety.

environmental policy, market fragmentation, innovation, technology transfer

Abstract:
It has long been argued that the implementation of market-based environmental policy instruments such as environmentally-related taxes and tradable permits is likely to lead to greater technological innovation than more direct forms of regulation such as technology-based standards. One of the principle reasons for such an assertion is that they they give firms greater 'flexibility' to identify the optimal means of innovating to meet the given environmental objective. Thus, it can be argued that the benefits of (some) market-based instruments can also be true of well-designed performance standards. While the theoretical case for the use of flexible policy instruments is well-developed, empirical evidence remains limited. Drawing upon a database of patent applications from a cross-section of countries evidence is provided for the positive effect of 'flexibility' of the domestic environmental policy regime on the propensity for the inventions induced to be diffused widely in the world economy. For a given level of policy stringency, countries with more flexible environmental policies are more likely to generate innovations which are diffused widely and are more likely to benefit from innovations generated elsewhere. And while the focus of this paper is on the specific case of environmental policy, the discussion is equally applicable to aspects of product and labour market regulation which have implications for technological innovation, such as product and workplace safety.

Environmental Policy, Market Fragmentation, Innovation, Technology Transfer

Abstract:
Drawing upon data collected from over 4,000 manufacturing facilities across the OECD this paper examines the factors which determine the likelihood of having undertaken significant measures with respect to air pollution, wastewater effluent, and solid waste. The roles played by the public policy framework, informal stakeholder pressures, and internal management practices are examined. While the role of public policy (perceived stringency and inspection frequency) is significant, an important role is also played by self-enforcement mechanisms through environmental management. Stakeholder pressures are not significant, except in the case of employees.

environmental policy, environmental management, air and water pollution, corporate social responsibility

Abstract:
The effect of uncertainty related to environmental damages or technological change has on the optimal level of environmental policy stringency has been extensively analysed in the literature. However, empirical evidence on the innovation efforts of firms in the face of actual policy uncertainty has not been examined formally. Drawing upon real options theory, it is hypothesised that for any given level of environmental policy stringency, environmental policy uncertainty can serve as a brake on investment in innovative activities which can reduce the cost of meeting environmental objectives. By increasing the benefits of 'waiting', policy uncertainty will reduce incentives to identify innovative environmental technologies. Using patent counts as a measure of environmental innovation, preliminary empirical evidence has been presented which supports this hypothesis.

Environmental Policy, Innovation, Uncertainty, Risk, Investment

Abstract:
Accelerating the development of less GHG intensive technologies and promoting their global diffusion - in particular in fast-growing emerging economies - is imperative in achieving the transition to a low-carbon economy. Consequently, technology is at the core of current discussions about the post-Kyoto regime. The purpose of this study is to fuel this discussion by providing an in-depth analysis of the geographic distribution of climate mitigation inventions since 1978 and their international diffusion on a global scale. We use the EPO/OECD World Patent Statistical Database (PATSTAT) which includes patents from 81 national and international patent offices. Note that the Least Developed Countries patent a negligible number of inventions, meaning that the geographical scope of the study is limited to industrialized countries and emerging economies. In this study, patent counts are used to measure the output of innovation but also the transfer of inventions across borders on the ground that an innovator patents his/her invention in a foreign country because he/she plans to exploit it commercially there. They are the only indicator available today that provides a comprehensive view on innovation and technology diffusion on a global scale. Patent data also present drawbacks. First, patents are not the only tool available to inventors to protect their inventions. Second, successful technology transfers also involve the transfer of know-how. Still one can reasonably assume that patent counts are positively correlated to the quantity of non-patented innovations and transfers. We consider 13 different classes of technologies with significant global GHG emission abatement potentials, and analyze inventive activities and international technology transfer between 1978 and 2003. The technologies considered are seven renewable energy technologies (wind, solar, geothermal, ocean energy, biomass, waste-to-energy, and hydropower), methane destruction, climate-friendly cement, energy conservation in buildings, motor vehicle fuel injection, energy-efficient lighting and Carbon Capture & Storage (CCS).

Climate Change, Mitigation Technologies, Patent Data

Abstract:
This paper uses the EPO/OECD World Patent Statistical Database (PATSTAT) to give a quantitative description of the geographic distribution of inventions in thirteen climate mitigation technologies since 1978 and their international diffusion on a global scale. Statistics suggest that the Kyoto Protocol has induced more innovation in the recent period. In contrast with innovation, there is no visible correlation between the protocol and technology transfer. We show that innovation is highly concentrated in three countries - Japan, Germany and the USA - which account for two thirds of total innovations. Surprisingly, the innovation performance of emerging economies is far from being negligible as China, South Korea and Russia globally represent about 15% of total inventions. But they export much less than industrialized countries. More generally, international transfers mostly occur between developed countries (75% of exported inventions). Exports from developed countries to emerging economies are still limited (18%) but are growing rapidly.

climate change, innovation, technology diffusion, technology transfer

Abstract:
In order to abate pollution manufacturing facilities can either change their production processes or introduce end-of-pipe technologies. The decision to undertake CPP rather than EOP is a reflection of the existence of economies of scope between production of the facility's conventional output and abatement of pollution. While this id determined by sectoral technological opportunities, facility size and other factors, environmental management practices and public policy also play a role. Our results suggest that flexible instruments are more likely to result in CPP. We also provide insights on the role of environmental management within the firm.

economies of scope, environmental policy, environmental management, technological innovation

Abstract:
This paper examines the effect of environmental policies on technological innovation in the specific case of renewable energy. The analysis is conducted using patent data on a panel of 25 countries over the period 1978-2003. It is found that public policy plays a significant role in determining patent applications. Different types of policy instruments are effective for different renewable energy sources.

Abstract:
In the late 1980s and early 1990s, concern over dioxin in both paper products and wastewater led to the development of techniques that reduced the use of chlorine in the pulp industry. Both regulatory and consumer pressure motivated this change. We use patent data to examine the evolution of two completing bleaching technologies in five major paper-producing countries, both of which reduce the use of chlorine in the pulping process. By the end of the 1990s, nearly all pulp production in these countries used one of these technologies. Unlike other papers using patents to study environmentally-friendly innovation, we focus on a process innovation, rather than on end-of-the-pipe solutions to pollution. Moreover, while previous studies emphasize the importance of regulation for inducing innovation, here we find substantial innovation occurring before regulations were in place. Instead, pressure from consumers to reduce the chlorine content of paper drives the first round of innovation. However, while some companies choose to adopt these technologies in response to consumer pressure, not all firms will differentiate their product in this way. Thus, governments need to regulate if their goal is broad diffusion of the environmental technology.

Abstract:
This paper examines the effect of the Kyoto Protocol‟s Clean Development Mechanism on the international transfer of wind power technologies. The analysis is conducted using patent data on over 100 countries during a 20-year period from 1988 to 2007. It is found that public policy plays a significant role in determining technology transfer. In particular, it is found that transfers from Annex 1 countries to non-Annex 1 countries are significantly affected by involvement with the Clean Development Mechanism. However, the effect of CDM is small compared to those of other factors.

Environmental Policy, Innovation, Patents, Climate Change, Technological Change, Technology Transfer, Kyoto Protocol, Clean Development Mechanism