Environmental Regulation and the Cross-Border Diffusion of New Technology: Evidence from Automobile Patents
London School of Economics & Political Science (LSE)
London School of Economics - Department of Geography and Environment
London School of Economics and Political Science (LSE)
June 19, 2012
Research Policy, Forthcoming
We examine the impact of environmental regulation on the international diffusion of new technology through the patent system. We employ a dataset of automobile emission standards between 1992 and 2007 and corresponding data on cross-border patent inflows of technologies developed to comply with these standards. Our analysis, based on a research design of country pair years, shows it is “regulatory distance” between countries rather than absolute regulatory stringency per se that matters for cross-border patent inflows: the flow of compliance technologies rises when regulatory standards in the inventor and the recipient countries become “closer”.
Number of Pages in PDF File: 53
Keywords: Pollution Control Technologies, Environmental Regulation, Patents, International Technology Diffusion
JEL Classification: O33, Q53, Q55
Date posted: June 19, 2012 ; Last revised: July 18, 2014
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