Working Paper: NBER ID: w25390
Authors: Wancong Fu; Chong Li; Jan Ondrich; David Popp
Abstract: We examine the effect of in-state and out-of-state renewable energy policies on wind energy patenting. Using a semiparametric fixed-effects Tobit model, we regress patent counts on a series of policy variables within a state and a spatially weighted average for each of these policies implemented in other states. We develop a lower bound for the marginal effects and find important differences across policy types. For renewable portfolio standards, overall demand matters. Policies in other states increase innovation, but own-state policies do not. In contrast, for financial incentives such as tax incentives and subsidy policies, own-state policies induce innovation.
Keywords: renewable energy; patenting; spillover effects; innovation; state policies
JEL Codes: C40; O31; Q42; Q48; Q55
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| policies from other states (e.g., RPS) (Q48) | wind energy patenting (Q42) |
| own-state policies (J18) | wind energy patenting (Q42) |
| financial incentives (own-state) (H73) | wind energy patenting (Q42) |
| neighboring state financial incentives (H79) | wind energy patenting (Q42) |