Does foreign environmental policy influence domestic innovation ? Evidence from the wind industry

This paper examines the relative influence of domestic and foreign renewable energy policies on innovation activity in wind power using patent data from OECD countries from 1994 to 2005. We distinguish between the impact of demand-pull policies (e.g., guaranteed tariffs, investment and production tax credits), as reflected by wind power capacities installed annually, and technology-push policies (government support to R&D). We show that inventors respond to both domestic and foreign new capacities by increasing their innovation effort. However, the effect on innovation of the marginal wind turbine installed at home is 28 times stronger than that of the foreign marginal wind turbine. Unlike demandpull policies, public R&D expenditures only affect domestic inventors. A simple calculation suggests that the marginal million dollars spent on R&D support generates 0.82 new inventions, whereas the same amount spent on the deployment of wind turbines induces, at best, 0.06 new inventions (0.03 locally and 0.03 abroad).innovation;public R&D;renewable energy policies;wind power

The Clean Development Mechanism and the International Diffusion of Technologies: An Empirical Study

The Clean Development Mechanism (CDM) is expected to stimulate the North-South transfer of climate-friendly technologies. This paper provides an assessment of the technology transfers that take place through the CDM using a unique data set of 644 registered projects. It provides a detailed description of the transfers (frequency, type, by sector, by host country, etc.). It also includes an econometric analysis of their drivers. We show that transfer likeliness increases with the size of the projects. The transfer probability is 50% higher in projects implemented in a subsidiary of Annex 1 companies while the presence of an official credit buyer has a lower – albeit positive – impact. The analysis also yields interesting results on how technological capabilities of the host country influence technology diffusion in the CDM.Kyoto Protocol, Clean Development Mechanism, International Technology Transfer

Technology transfer by CDM projects: A comparison of Brazil, China, India and Mexico

In a companion paper [Dechezleprêtre, A., Glachant, M., Ménière, Y., 2008. The Clean Development Mechanism and the international diffusion of technologies: An empirical study, Energy Policy 36, 1273–1283], we gave a general description of technology transfers by Clean Development Mechanism (CDM) projects and we analyzed their drivers. In this paper, we use the same data and similar econometric models to explain inter-country differences. We focus on 4 countries gathering about 75% of the CDM projects: Brazil, China, India and Mexico. Sixty eight percent of Mexican projects include an international transfer of technology. The rates are, respectively, 12%, 40% and 59% for India, Brazil and China. Our results show that transfers to Mexico and Brazil are mainly related to the strong involvement of foreign partners and good technological capabilities. Besides a relative advantage with respect to these factors, the higher rate of international transfers in Mexico seems to be due to a sector-composition effect. The involvement of foreign partners is less frequent in India and China, where investment opportunities generated by fast growing economies seem to play a more important role in facilitating international technology transfers through the CDM. International transfers are also related to strong technology capabilities in China. In contrast, the lower rate of international transfer (12%) in India may be due to a better capability to diffuse domestic technologies.

The Clean Development Mechanism and the International Diffusion of Technologies: An Empirical Study

The Clean Development Mechanism (CDM) is expected to stimulate the North-South transfer of climate-friendly technologies. This paper provides an assessment of the technology transfers that take place through the CDM using a unique data set of 644 registered projects. It provides a detailed description of the transfers (frequency, type, by sector, by host country, etc.). It also includes an econometric analysis of their drivers. We show that transfer likeliness increases with the size of the projects. The transfer probability is 50% higher in projects implemented in a subsidiary of Annex 1 companies while the presence of an official credit buyer has a lower-albeit positive-impact. The analysis also yields interesting results on how technological capabilities of the host country influence technology diffusion in the CDM.Protocole de Kyoto; Mécanisme de Développement Propre; Transfert International de Technologie

Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market

This paper investigates the impact of the EU Emissions Trading Scheme (EU ETS) on technological change. We exploit installations-level inclusion criteria to estimate the impact of the EU ETS on firms patenting. We find that the EU ETS has increased low-carbon innovation among regulated firms by as much as 10%, while not crowding out patenting for other technologies. We also find evidence that the EU ETS has not impacted patenting beyond the set of regulated companies. These results imply that the EU ETS accounts for nearly a 1% increase in European lowcarbon patenting compared to a counterfactual scenario

Imported carbon emissions: evidence from French manufacturing companies

This paper analyzes imported carbon emission at the firm level. To do so, we combine information on emissions, imports, imported emissions and energy prices for French manufacturing firms between 1997 and 2014. We document a significant increase of the carbon emissions embedded in imports of French manufacturing companies over the period 1997 to 2014 that is attributable mainly to a shift towards more carbon-intensive products and countries. We then estimate the impact of imported emissions on domestic emissions and emission intensity using a shift-share instrumental variable strategy based on third countries supply shocks. We do not find compelling evidence of an impact of carbon imports on total emissions, but emission efficiency improves significantly in companies offshoring emissions abroad. A 10% increase in carbon offshoring causes a 4% decline in emission intensity. In addition, we find that the elasticity of domestic emission intensity to imported emissions is stronger in energy-intensive sectors, on high-productivity companies and among exporters. Reassuringly, the relationship between imported emissions and emission intensity does not seem to be driven by a pollution haven motive

Invention and Transfer of Climate Change Mitigation Technologies on a Global Scale: A Study Drawing on Patent Data

Accelerating the development of less GHG intensive technologies and promoting their global diffusion - in particular in fast-growing emerging economies - is imperative in achieving the transition to a low-carbon economy. Consequently, technology is at the core of current discussions about the post-Kyoto regime. The purpose of this study is to fuel this discussion by providing an in-depth analysis of the geographic distribution of climate mitigation inventions since 1978 and their international diffusion on a global scale. We use the EPO/OECD World Patent Statistical Database (PATSTAT) which includes patents from 81 national and international patent offices. Note that the Least Developed Countries patent a negligible number of inventions, meaning that the geographical scope of the study is limited to industrialized countries and emerging economies. In this study, patent counts are used to measure the output of innovation but also the transfer of inventions across borders on the ground that an innovator patents his/her invention in a foreign country because he/she plans to exploit it commercially there. They are the only indicator available today that provides a comprehensive view on innovation and technology diffusion on a global scale. Patent data also present drawbacks. First, patents are not the only tool available to inventors to protect their inventions. Second, successful technology transfers also involve the transfer of know-how. Still one can reasonably assume that patent counts are positively correlated to the quantity of non-patented innovations and transfers. We consider 13 different classes of technologies with significant global GHG emission abatement potentials, and analyze inventive activities and international technology transfer between 1978 and 2003. The technologies considered are seven renewable energy technologies (wind, solar, geothermal, ocean energy, biomass, waste-to-energy, and hydropower), methane destruction, climate-friendly cement, energy conservation in buildings, motor vehicle fuel injection, energy-efficient lighting and Carbon Capture & Storage (CCS).Climate Change, Mitigation Technologies, Patent Data

Do environmental and economic performance go together? A review of micro-level empirical evidence from the past decade or so

This article reviews the empirical literature combining economic and environmental performance data at the micro-level, i.e. firm or facility level. The literature has generally found a positive and statistically significant correlation between economic performance, as measured by profitability indicators or stock market returns, and environmental performance, as measured by emissions of pollutants or adoption of international environmental standards. The main reason for this finding seems to be that firms that reduce their material and energy costs experience both better economic performance and lower emissions. Only a small and recent literature analyses the joint causal impact of environmental regulations on environmental and economic performance. Interestingly, this literature shows that environmental regulations tend to improve environmental performance while not weakening economic performance. However, the evidence so far is limited to a handful of environmental regulations that are not extremely stringent, so the result cannot be easily generalized. More research is needed to assess the joint effects of environmental regulations on environmental and economic performance, to explore the heterogeneity of these effects across sectors, countries and types of policies, and to understand which policy designs allow improving environmental quality while not coming at a cost in terms of economic performance of regulated businesses

Invention and transfer of climate change-mitigation technologies: A global analysis

This article uses the European Patent Office Worldwide Patent Statistical Database to examine the geographic distribution and global diffusion of inventions in thirteen climate-mitigation technologies since 1978. The data suggest that until 1990 innovation was driven mostly by energy prices. Since then, environmental policies, and, more recently, climate policies, have accelerated the pace of innovation. The data also indicate that innovation is highly concentrated in three countries-Japan, Germany, and the United States-which together account for 60 percent of total inventions. Surprisingly, the contribution of emerging economies is far from negligible as China and Brazil together account for about 10 percent of total inventions. However, inventions from emerging economies are less likely to find markets beyond their borders, suggesting that inventions from emerging economies have less value. More generally, international transfers occur mostly between developed countries (73 percent of all exported inventions). Exports from developed countries to emerging economies are still limited (22 percent) but are growing rapidly, especially to China.climate change; conference proceeding; environmental economics; environmental policy; environmental technology; export; mitigation

L'innovation technologique face au changement climatique : quelle est la position de la France ?

Cet article propose une analyse statistique du positionnement et de la performance de la France en matière de technologies de lutte contre le réchauffement climatique. La méthodologie s'appuie sur une base de données décrivant l'ensemble des dépôts de brevets entre 1980 et 2008 dans 17 classes technologiques couvrant un large spectre de technologies liées au climat. Avec 5,2% des inventions brevetées en moyenne en 2008 dans les technologies étudiées, la France est en moyenne au 5ème rang mondial dans un classement dominé par les Etats-Unis, le Japon, la Corée du Sud et l'Allemagne. 20% des dépôts de brevet en France proviennent du secteur public, contre 10% dans les autres pays industrialisés. Plus de la moitié des inventions "climat" françaises sont protégés dans des pays étrangers, soit 1,5 fois plus que la moyenne mondiale. L'analyse par domaine technologique met en évidence un positionnement faible de la France dans les énergies renouvelables, dans lesquelles l'innovation est pourtant la plus dynamique au niveau mondial. En revanche, son positionnement est fort dans des secteurs comme le nucléaire (même si elle n'arrive qu'au troisième rang derrière le Japon et les Etats-Unis), la capture et séquestration du carbone (CSC), l'isolation, le ciment, le chauffage, l'hydraulique et les véhicules électriques et hybrides, où elle tire parti de la présence et du potentiel innovant des grandes firmes françaises d'envergure internationale (Air Liquide, Alstom, Areva, Electricité de France, Lafarge, PSA Peugeot Citroën, Renault, Saint-Gobain, Schlumberger) et des organismes publics de recherche scientifique (CNRS, Commissariat à l'Energie Atomique, Institut Français du Pétrole)