This paper provides an empirical investigation of the role played by selected characteristics of the policy mix in inducing innovation in energy efficiency technologies. An original dataset covering 23 OECD countries over the period 1990-2010 combines the full set of policies in the energy efficiency domain for the residential sector with data on patents applied over the same period in this specific technological sector. The econometric results suggest that when the policy mix is characterised by a more balanced use in demand-pull and technology-push instruments, its positive effects on eco-innovation tend to be greater. Moreover, a more comprehensive policy mix is shown to be able to enhance innovation activities for the generation of new energy efficient technologies. However, the simple addition of an indiscriminate number of simultaneous policy instruments may reduce policy mix effectiveness. Finally, our findings confirm previous evidence on the importance of policy spillover effects, and suggests that country-pair policy similarity may represent an important aspect to be accounted for in policy mix design.
Characterizing the Policy Mix and Its Impact on Eco- Innovation in Energy-Efficient Technologies
Valeria Costantini
Roma Tre University
Francesco Crespi
Roma Tre University
Alessandro Palma
University of Rome “Tor Vergata”