Environmental Policy Stringency and Technological Innovation: Evidence from Survey Data and Patent Counts

Applied Economics, Vol. 44, No. 17, pp. 2157–2170, 2012

Posted: 2 Jan 2012

See all articles by Nick Johnstone

Nick Johnstone

International Energy Agency - Energy Statistics Division

Ivan Hascic

Organization for Economic Co-operation and Development (OECD)

Julie Poirier

affiliation not provided to SSRN

Marion Hemar

affiliation not provided to SSRN

Christian Michel

affiliation not provided to SSRN

Date Written: January 2, 2012

Abstract

This article uses patent data to examine the impact of public environmental policy on innovations in environment-related technology. The analysis is conducted using data on an unbalanced panel of 77 countries between 2001 and 2007, drawing upon data obtained from the European Patent Office (EPO) World Patent Statistical (PATSTAT) database and the World Economic Forum's (WEF) ‘Executive Opinion Survey’. The results support our hypotheses concerning the positive role of both general innovative capacity and environmental policy stringency on environment-related innovation. A subsequent two-stage model assesses the factors which drive innovation in general and uses the fitted values to estimate environmental innovation. While the analysis is conducted on a smaller sample, they confirm the findings of the reduced-form model.

Keywords: environmental policy, technological innovation, patents

JEL Classification: O31, O38, Q55, Q58

Suggested Citation

Johnstone, Nick and Haščič, Ivan and Poirier, Julie and Hemar, Marion and Michel, Christian, Environmental Policy Stringency and Technological Innovation: Evidence from Survey Data and Patent Counts (January 2, 2012). Applied Economics, Vol. 44, No. 17, pp. 2157–2170, 2012, Available at SSRN: https://ssrn.com/abstract=1978362

Nick Johnstone (Contact Author)

International Energy Agency - Energy Statistics Division ( email )

United States

Ivan Haščič

Organization for Economic Co-operation and Development (OECD) ( email )

2 rue Andre Pascale
75775 Paris Cedex 16
France

Julie Poirier

affiliation not provided to SSRN ( email )

Marion Hemar

affiliation not provided to SSRN ( email )

Christian Michel

affiliation not provided to SSRN ( email )

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