Environmental policies and innovation in renewable energy
Bettarelli, Luca ; Furceri, Davide ; Pizzuto, Pietro ; Shakoor, Nadia
IMF - Washington, DC
2023
55 p.
climate change ; innovation ; environmental policy ; renewable resources
IMF Working Paper
WP/23/180
Environment
https://doi.org/10.5089/9798400251658.001
English
Bibliogr.
"This paper investigates the effect of Climate Change Policies (CCPs) on green innovation, for a sample of 40 advanced and emerging market economies and 5 economic sectors, during the period 2000-2021. Our results suggest that CCPs increase green patents, with the effect increasing gradually over time. The effect is larger for non-market-based policies—such as R&D subsidies—and technology-support instruments, in countries with greater competitiveness and during periods of stronger economic activity—that is, higher GDP growth, lower uncertainty and financial stress. The results based on a difference-in-differences approach suggest that the positive effect of stricter CCPs on green innovation is stronger in sectors with limited financial constraints."
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