Buying or Performing Abatement: Environmental Policy and Welfare When Commitment Is (Not) Credible
In: Italian economic journal: official peer-reviewed journal of the Italian Economic Association
ISSN: 2199-3238
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In: Italian economic journal: official peer-reviewed journal of the Italian Economic Association
ISSN: 2199-3238
In: Review of International Economics, Band 20, Heft 3, S. 580-599
SSRN
In: Environmental and resource economics, Band 67, Heft 2, S. 379-401
ISSN: 1573-1502
In: FEEM Working Paper No. 55.2014
SSRN
Working paper
This paper investigates the fragmentation of the EU innovation system in the field of renewable energy sources (RES) by estimating the intensity and direction of knowledge spillovers over the years 1985–2010. We modify the original double exponential knowledge diffusion model proposed by Caballero and Jaffe (1993) to provide information on the degree of integration of EU countries' RES knowledge bases and to assess how citation patterns changed over time. We show that EU RES inventors have increasingly built "on the shoulders of the other EU giants", intensifying their citations to other member countries and decreasing those to domestic inventors. Furthermore, the EU strengthened its position as source of RES knowledge for the US. Finally, we show that this pattern is peculiar to RES, with other traditional (i.e. fossil-based) energy technologies and other radically new technologies behaving differently. Our results provide suggestive, but convincing evidence that the reduction in fragmentation emerged as a result of the EU support for RES taking mainly the form of demand-pull policies.
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In: FEEM Working Paper No. 71.2016
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Working paper