Impact of domestic energy-efficiency policies on foreign innovation: The case of lighting technologies. (May 2019)

• Record Type: Journal Article
• Authors: Kim, Yeong Jae; Brown, Marilyn
• Is Part Of: Energy policy. Volume 128(2019)
• Page Start: 539
• Page End: 552
• Publication Date: 2019-05
• Subjects: Q55 -- Q54 -- O33; Economics of Innovation -- International Technology Diffusion -- Negative Binomial Model; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2019.01.032
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: Fostering the global development of low-carbon technology is crucial to mitigating greenhouse gas emissions. This paper analyzes the effect of energy-efficiency policies on lighting patenting between 1992 and 2007, using data for 19 OECD countries. We examine levels of energy-efficiency RD&D expenditures (representing a technology-push approach) and the stringency of energy-efficiency performance standards (representing a demand-pull approach). We find strong correlational evidence that both domestic demand-pull and technology-push policies positively affect domestic lighting patenting. We also provide strong correlational evidence that the demand-pull policy positively affects foreign lighting patenting; however, the technology-push policy does not. These findings suggest that demand-pull policies can help to transform international markets for low-carbon technology innovation, and they underscore the importance of the often-overlooked international dimension of domestic energy-efficiency policies. To the extent that our findings are generalizable, our research suggests that governance processes that strengthen energy performance standards and steady investment in RD&D could spur energy innovation in industrialized nations across the world. Highlights: We examine the impact of domestic energy policies on foreign lighting patenting. Demand-pull policy can have trans-national spillover effects. Demand-pull policies can help to transform clean technology international markets. The international dimension of domestic energy-efficiency policies is important.