Has the EU ETS induced low-carbon innovation?

Has the EU ETS induced low-carbon innovation? / Antoine Dechezlepretre, Grantham Research Institute on Climate Change, London School of Economics, EU energy policy blog, February 21st, 2013

http://www.energypolicyblog.com/2013/02/21/has-the-eu-ets-induced-low-carbon-innovation/

The EU ETS is the main instrument of European climate policy, and many policymakers envisage it as a driving force of the EU’s transition to a low-carbon economy. By putting a price on emissions, the scheme is expected to encourage heavy polluters to develop new low-carbon technologies. At first glance it is encouraging to notice, then, that patenting for low-carbon technologies has surged in Europe since 2005. When analyzing new data we find compelling evidence that the EU ETS has indeed encouraged regulated companies to develop new low-carbon technologies, but this effect is concentrated among too few companies to account for the surge in low-carbon patenting…


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