Environmental Policy and Technological Innovation

Technological change is undoubtedly one of the keys to ensuring that economic growth and environmental improvements co-exist. As such it is vitally important that environmental policies and instruments provide the right incentives for the development and use of environmentally-preferable technologies.

As part of its work on decoupling environmental pressures from economic growth, the OECD’s Environment Directorate has launched a project on the effects of public policy on technological innovation with the aim of improving the design, implementation and evaluation of environmental policies. Drawing upon patent data, the links between public policy and technological change are being examined. In particular, data on selected OECD countries is analysed to study innovation effects of alternative policy instruments (such as emission or technology standards, investment incentives, taxes, tariffs, and tradable permits).

presentation based upon preliminary results from this work and related work on the determinants of environmental research and development is available. Work on the use of the OECD's triadic patent family database to study environmental innovation has been undertaken. For more details on the database, see OECD's work on patents conducted at the Directorate for Science, Technology and Industry.

Effects of environmental policies on innovation in the following areas are being examined:
• Renewable energy
• Wastewater pollution from pulp & paper industry – This work is being undertaken in collaboration with David Popp at Syracuse University
• Automotive emissions – This work is being undertaken in collaboration with Frans de Vries at the University of Stirling

report bringing together the results of this work is available. A brief overview of some of the main conclusions is available.

Related work has been undertaken on the determinants of firm’s environmental R&D and clean production.

As a follow-up, work on ‘innovation, globalisation and competitiveness’ is envisaged. The aim is to examine the effects of environmental regulation and the resulting market segmentation on international diffusion of knowledge and technology.

The friendly url for this page: www.oecd.org/env/cpe/firms/innovation

Related links:

Links to related OECD sites:

OECD STI   OECD’s Directorate for Science, Technology and Industry
OECD Statistics   OECD’s Database of statistical indicators, including triadic patent family data

Links to related institutional bodies:

esp@cenet   A free online service for patent search   
EPO    European Patent Office   
JPO   Japan Patent Office   
USPTO    United States Patent and Trademark Office 
WIPO    World Intellectual Property Organisation 


Contact us:

For more information regarding this project please contact Nick Johnstone or Ivan Hascic at: env.contact@oecd.org.

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Business and the Environment

Business and the Environment

Environmental Policy And Corporate Behaviour

Environmental Policy And Corporate Behaviour