Loading...
Policy-induced innovation in clean technologies: Evidence from the car market
Rozendaal,Rik Vollebergh,Herman
Rozendaal,Rik
Vollebergh,Herman
Abstract
This article analyzes the effects of fuel economy and greenhouse gas emission standards on the direction of innovation. We develop an intuitive measure of standard stringency that captures the policy's most important attributes for the incentive to innovate. To test the role of standards, prices and taxes for the innovation decision, we construct a firm-level panel of patents in clean and dirty automotive technologies for the years 2000-2016. Our results indicate that standards are a robust driver inducing zero emission technologies in the car market, while taxes also play a role. The effect of standards is driven by patenting for electric vehicle and hydrogen fuel cell technologies. We find no evidence that these policies negatively impact dirty innovation.
Description
Date
2025-05
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
Organizational Units
Journal Issue
Keywords
Environmental policy instruments, regulatory stringency, innovation, directed technical change, Regulatory stringency, innovation, directed technical change, O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights, Q55 - Technological Innovation, Q58 - Government Policy, SDG 8 - Decent Work and Economic Growth
Citation
Rozendaal, R & Vollebergh, H 2025, 'Policy-induced innovation in clean technologies : Evidence from the car market', Journal of the Association of Environmental and Resource Economists, vol. 12, no. 3, pp. 565-598. https://doi.org/10.1086/731834