Environmental Regulation and Innovation in Renewable Energy Technologies

42 Pages Posted: 23 Feb 2016

See all articles by Henning Diederich

Henning Diederich

Handelshochschule Leipzig (HHL)

Wilhelm Althammer

HHL Leipzig Graduate School of Management

Date Written: January 28, 2016

Abstract

This paper examines the impact of renewable energy support policies on patent applications in solar and wind power technologies. The analysis is conducted using policy data and patent data for a sample of 225 countries and territories between 1990 and 2011. The policy data allows distinguishing two dimensions of regulation, design and intensity and their effects on innovation. The patent data is based on the new Y02E system and covers the recent years with strong increases in patent activity. The results show that, first, more intense portfolios of renewable energy support policies increase patenting in solar- and wind-power-related technologies, and, second, that this inducement effect is strongest for public RD&D programs, greenhouse gas trading systems, and fiscal incentives. In contrast to previous studies, this paper does not find technology-specific differences in the effectiveness of policy instruments.

Keywords: Innovation, renewable energy technologies, environmental regulation

JEL Classification: Q55, Q58, O31

Suggested Citation

Diederich, Henning and Althammer, Wilhelm, Environmental Regulation and Innovation in Renewable Energy Technologies (January 28, 2016). Available at SSRN: https://ssrn.com/abstract=2736357 or http://dx.doi.org/10.2139/ssrn.2736357

Henning Diederich

Handelshochschule Leipzig (HHL) ( email )

Jahnallee 59
Leipzig, 04109
Germany

Wilhelm Althammer (Contact Author)

HHL Leipzig Graduate School of Management ( email )

Jahnallee 59
D-04109 Leipzig
Germany

HOME PAGE: http://www.hhl.de

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