Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/72954 
Year of Publication: 
2012
Series/Report no.: 
Nota di Lavoro No. 99.2012
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between dirty (internal combustion engine) and clean (e.g. electric and hybrid) patents across 80 countries over several decades. We show that firms tend to innovate relatively more in clean technologies when they face higher tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers and from the firm's own innovation history. Using our model we simulate the increases in carbon taxes needed to allow clean to overtake dirty technologies.
Subjects: 
Climate Change
Innovation
Directed Technical Change
Automobiles
JEL: 
O3
O13
L62
Document Type: 
Working Paper

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