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The Impact of Energy Prices on Green Innovation

Marius Ley, Tobias Stucki, and Martin Woerter

Year: 2016
Volume: Volume 37
Number: Number 1
DOI: 10.5547/01956574.37.1.mley
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Abstract:
Based on patent data and industry specific energy prices for 18 OECD countries over 30 years we investigate on an industry level the impact of energy prices on green innovation activities. Our econometric models show that energy prices and green innovation activities are positively related and that energy prices have a significantly positive impact on the ratio of green innovations to non-green innovations. More concretely, our main model shows that a 10% increase of the average energy prices over the previous five years results in a 3.4% and 4.8% increase of the number of green innovations and the ratio of green innovations to non-green innovations, respectively. We also find that the impact of energy prices increases with an increasing lag between energy prices and innovation activities. Robustness tests confirm the main results.



Green Inventions: Is Wait-and-see a Reasonable Option?

Tobias Stucki and Martin Woerter

Year: 2017
Volume: Volume 38
Number: Number 4
DOI: 10.5547/01956574.38.4.tstu
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Abstract:
We analyze the potential of different knowledge stocks to decrease the technological gap between the leader in green technology inventions and its followers in order to identify if wait-and-see is a reasonable option to benefit from knowledge. Our econometric results indicate that it is difficult to decrease the technological gap and remain competitive in the generation of green technologies without timely accumulating green knowledge. Although effects from external green knowledge stocks also contribute to decrease the technological gap, the effects are moderate and they cannot compensate the lack of internal green competences. Non-green knowledge stocks even tend to increase the technological gap.





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