Environmental Policies, Product Market Regulation and Innovation in Renewable Energy
Lionel Nesta, SciencesPo, OFCE-DRIC
Francesco Vona, SciencesPo, OFCE-DRIC
Francesco Nicolli, University of Ferrara
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.
Lionel Nesta, Francesco Vona, and Francesco Nicolli,
"Environmental Policies, Product Market Regulation and Innovation in Renewable Energy"
(January 14, 2013).
Fondazione Eni Enrico Mattei Working Papers.
Working Paper 741.