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 sound 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).

• In collaboration with David Popp and Frans de Vries, the effects of environmental policies on innovation in renewable energy, wastewater pollution abatement, and motor vehicle emissions abatement have been examined.  A book bringing together the results of this work is available.
• Related work has been undertaken on the determinants of firm’s environmental R&D and clean production.
• On-going work is examining the role that the general environmental policy framework (stability, flexibility, stringency) plays in inducing environmental innovation.
• In addition a number of studies are being undertaken in the area of climate change mitigation, including the determinants and consequences of international technology transfer.
• For a discussion of methodology see ENV/EPOC/WPNEP(2009)1/FINAL
  

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

Related links:

Links to related OECD sites:

• OECD’s Directorate for Science, Technology and Industry and its work on patent statistics   
• OECD’s Database of statistical indicators (OECD.Stat), including triadic patent family (TPF) data

Links to related institutional bodies:

• esp@cenet   A free online service for patent searches
• 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.