Friday Lunch Meeting, Elena Verdolini, 16th of November 2018

Elena Verdolini (European Institute on Economics and the Environment :EIEE) will present the following article: “Threshold Policy Effects and Directed Technical Change in Energy Innovation”, co-written with Lionel Nesta and Francesco Vona.

 

The presentation will be done in English.

This paper analyzes the effect of environmental policies on the direction of energy innovation across countries over the period 1990-2012. Our novelty is to use threshold regression models to allow for discontinuities in policy effectiveness depending on a country’s relative competencies in renewable and fossil fuel technologies. We show that the dynamic incentives of environmental policies become effective just above the median level of relative competencies. In this critical second regime, market-based policies are moderately effective in promoting renewable innovation, while commandand-control policies depress fossil based innovation. Finally, market-based policies are more effective to consolidate a green comparative advantage in the last regime. We illustrate how our approach can be used for policy design in laggard countries.

 

 

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Chaire Economie du Climat

FLM- Salle du Séminaire – 4è étage (12.30 pm – 2 pm)