Is There a Relationship between Public Expenditures in Energy R&D and Carbon Emissions per GDP? An Empirical Investigation

Energy Policy, 2010

39 Pages Posted: 18 May 2010 Last revised: 2 Dec 2013

See all articles by Paola Garrone

Paola Garrone

Politecnico di Milano

Luca Grilli

Polytechnic University of Milan - Department of Management, Economics and Industrial Engineering

Date Written: May 18, 2010

Abstract

Energy innovation plays a crucial role in the reduction of carbon emissions. In order to design climate and energy policies that promote the development, deployment and diffusion of new energy technologies, policy makers not only require a theoretical understanding of the energy innovation system, but also empirical evidence of the effects that policy actions have had. This paper focuses on public energy R&D, a traditional and controversial option among the various climate technology policies, and empirically analyses its relationship with carbon emissions per GDP (i.e. carbon intensity) and its two components: energy intensity and the carbon factor. Evidence of the causality links that have prevailed in 13 advanced economies over the 1980-2004 period has been obtained through dynamic panel models. Our findings confirm that government R&D spending is not sufficient by itself to boost the energy innovation process. Public energy R&D has been successful in improving energy efficiency at country level, but it has failed to have a significant impact on the carbon factor and carbon intensity. At the same time the formation of energy R&D budgets is found to be significantly affected by carbon trends.

Keywords: Carbon emissions, energy efficiency, energy R&D

JEL Classification: Q48,O3

Suggested Citation

Garrone, Paola and Grilli, Luca, Is There a Relationship between Public Expenditures in Energy R&D and Carbon Emissions per GDP? An Empirical Investigation (May 18, 2010). Energy Policy, 2010. Available at SSRN: https://ssrn.com/abstract=1610103

Paola Garrone (Contact Author)

Politecnico di Milano ( email )

piazza Leonardo da Vinci 32
Milano, 20133
Italy
+39-02-23992742 (Phone)

Luca Grilli

Polytechnic University of Milan - Department of Management, Economics and Industrial Engineering ( email )

Via Lambruschini 4C - building 26/A
Milano, 20156
Italy

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