Directing technical change from fossil-fuel to renewable energy innovation: An empirical investigation using patent data

Time: 2011, Wednesday June 15, 14.00-15.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

WARNING: This seminar is on a wednesday, 14.00-15.00 hours!

Presentation: Roger Smeets (CPB)

Discussant: Herman Vollebergh (PBL Netherlands Environmental Assessment Agency)

Language: English

Registration:  Please register by sending an email to seminars@cpb.nl.

Abstract subject: This paper investigates the factors inducing firms to shift innovative activities away from fossil fuel technologies towards renewable energy innovations. We use firm-level data on patents filed in renewable and fossil fuel technologies by 9,000 European firms over the 1978-2006 period. We find evidence that mixed firms, innovating in both technology types, tend to substitute fossil fuel by renewable innovation when they face higher fossil fuel prices (or an equivalent carbon tax) and a high market demand for renewable energy. Firms that have a longer history of innovation in renewable energy are also more likely to switch to these technologies. Yet, our results also show that firms innovating only in fossil fuel technologies, and which by definition cannot substitute fossil fuel by another technology, will respond to a price increase by increasing patenting in this sector as predicted by Hicks' induced innovation hypothesis. These results suggest that different policy choices might apply to different types of firms.

Seminars
CPB organises seminars for researchers. During these seminars, always held on Tuesday from 1.00 pm. to 2.00 pm., academic papers are presented and discussed. Read here how to subscribe (or unsubscribe) to our seminar alert service.

Policy seminars
CPB also organises policy seminars for policy makers, researchers and other stakeholders. These policy seminars focus on policy implications. Policy seminars are held on Thursday from 1.00 pm. to 2.00 pm. Read here how to subscribe (or unsubscribe) to our Policy seminar alert service.