April 25, 2011

Environmental Regulations, Market Structure and Technological Progress in Renewable Energy Technology: A Panel Data Study on Wind Turbines

by Dirk Rübbelke and Pia Weiss

- We study the impact of environmental regulations on the patent activities for wind turbines between 1980 and 2008. We explicitly control for energy market liberalisation and take a potential interaction between liberalisation and policy instruments into account. We find a strong and highly significant effect of environmental tax revenues, which we regard as a proxy for the extent to which energy prices changed in favour of renewable energies, as well as foreign demand for wind turbines on innovation activities.

Rübbelke, D. and P. Weiss (2011). "Environmental Regulations, Market Structure and Technological Progress in Renewable Energy Technology: A Panel Data Study on Wind Turbines." FEEM Note di lavoro No. 2011.032, Apr 2011.