Adopt or Innovate: Understanding technological responses to cap-and-trade
- Calel, Rapael (Georgetown University)
AbstractOne important motivation for creating cap-and-trade programs for carbon emissions is the expectation that they will stimulate much-needed low-carbon innovation. I construct a new panel of British firms to investigate this hypothesis, finding that the European carbon market has encouraged greater low-carbon patenting and R&D spending among regulated firms, without necessarily driving short-term reductions in carbon intensity of output. This stands in contrast to past cap-and-trade programs, which have primarily spurred adoption of existing pollution control technologies, with little effect on innovation. I discuss how to reconcile these contrasting findings and implications for the future of carbon markets.
2000-01-01 / 2012-12-31Time Period: Sat Jan 01 00:00:00 EST 2000--Mon Dec 31 00:00:00 EST 2012
Calel, Raphael. “Adopt or Innovate: Understanding Technological Responses to Cap-and-Trade.” American Economic Journal: Economic Policy, n.d.
Update Metadata: 2020-07-23 | Issue Number: 1 | Registration Date: 2020-07-23