Environmental Policies, Product Market Regulation and Innovation in Renewable Energy

44 Pages Posted: 22 Dec 2012

See all articles by Lionel Nesta

Lionel Nesta

University of Sussex

Francesco Vona

Observatoire Français des Conjonctures Economiques (OFCE) - Department for Research on Innovation and Competition

Francesco Nicolli

University of Ferrara

Date Written: December 21, 2012

Abstract

We investigate the effectiveness of policies in favor of innovation in renewable energy under different levels of competition. Using information regarding renewable energy policies, product market regulation and high-quality green patents for OECD countries since the late 1970s, we develop a pre-sample mean count-data econometric specification that also accounts for the endogeneity of policies. We find that renewable energy policies are significantly more effective in fostering green innovation in countries with deregulated energy markets. We also find that public support for renewable energy is crucial only in the generation of high-quality green patents, whereas competition enhances the generation of green patents irrespective of their quality.

Keywords: Renewable Energy Technology, Patents, Environmental Policies, Product Market Regulation, Policy Complementarity

JEL Classification: Q55, Q58, Q42, Q48, O34

Suggested Citation

Nesta, Lionel and Vona, Francesco and Nicolli, Francesco, Environmental Policies, Product Market Regulation and Innovation in Renewable Energy (December 21, 2012). FEEM Working Paper No. 90.2012. Available at SSRN: https://ssrn.com/abstract=2192441 or http://dx.doi.org/10.2139/ssrn.2192441

Lionel Nesta

University of Sussex ( email )

Sussex House
Falmer
Brighton, Sussex BNI 9RH
United Kingdom

Francesco Vona (Contact Author)

Observatoire Français des Conjonctures Economiques (OFCE) - Department for Research on Innovation and Competition ( email )

250 rue Albert Einstein
Valbonne, 06560
France

HOME PAGE: http://www.ofce.sciences-po.fr/ofce/dric.htm

Francesco Nicolli

University of Ferrara ( email )

C.so Ercole I° d'Este 37
Ferrara, 44100
Italy

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