Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/306604 
Year of Publication: 
2024
Citation: 
[Journal:] Journal of Environmental Planning and Management [ISSN:] 1360-0559 [Issue:] Latest Articles [Publisher:] Taylor & Francis [Place:] London [Year:] 2024 [Pages:] 1-27
Publisher: 
Taylor & Francis, London
Abstract: 
In a race against global warming, the world must accelerate the development and adoption of environmental innovations (EIs). In this literature review, we explore the role of governments in promoting EIs across stages of maturity and assess the potential to reduce emissions. Theoretical frameworks on market imperfections underline the necessity of governmental Research and Development (R&D) support. While emission pricing remains the most cost-efficient climate policy, it fails as a stand-alone instrument to sufficiently encourage EI. Overall, the optimal approach is a policy mix complementing emission pricing with governmental R&D support. The theoretical finding is backed by empirical studies on the developmentand deployment of renewable energies, which also show that investment in R&D can effectively reduce emissions. The review concludes by dissecting two pivotalpolicy initiatives, the US Inflation Reduction Act and the European Green New Deal Industrial Plan, evaluating their potential to effectively contribute to decarbonization.
Subjects: 
green/eco-/environmental innovation
R&D support
climate policy
innovation policy
JEL: 
O32
O38
Q54
Q55
Q58
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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