Working Paper: NBER ID: w15673
Authors: David Popp
Abstract: Reducing emissions of the greenhouse gases that cause climate change will require dramatic changes in the way that energy is produced and consumed. The cost of technological changes such as alternative energy sources and improved energy efficiency will play a large role in determining the overall cost of combating climate change. The development of these technologies will be heavily influenced by government policy. Both environmental and R&D policies provide incentives encouraging the development of clean technologies. Understanding the incentives provided by these policies, and their influence on the development of new technologies, is important for understanding the ultimate effects of climate policy. This chapter reviews the literature on environmental innovation and diffusion, with a focus on studies relevant to the development of clean energy technologies necessary to address climate change. I discuss the implications of this literature for the development of climate policy.
Keywords: No keywords provided
JEL Codes: O31; O33; Q40; Q42; Q54; Q55
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Government policies (H59) | Development of clean technologies (Q55) |
| Development of clean technologies (Q55) | Reduction of greenhouse gas emissions (H23) |
| Government policies (H59) | Induced innovation (O36) |
| Induced innovation (O36) | Higher levels of R&D spending (O39) |
| Higher levels of R&D spending (O39) | Technological advancements (O33) |
| Environmental policies + Technology policies (Q55) | Enhanced effectiveness of policies (D78) |
| Environmental externalities + Knowledge market failures (D89) | Optimal levels of innovation (O31) |
| Government policies (H59) | Technological advancements (O33) |
| Technological advancements (O33) | Reduction of greenhouse gas emissions (H23) |