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Fuel Prices and Environment-Friendly Innovations. Evidence from the Automobile Industry

Sauchanka, Palina LU (2015) EKHM52 20151
Department of Economic History
Abstract (Swedish)
This paper empirically examines the relationship between fuel prices and patenting activity in environment-friendly technologies in the auto industry across the OECD countries for the period 1994-2011. Overall, the results suggest that tax-inclusive fuel price affects innovative activity in environment-friendly technologies. More specifically, the analysis shows that the technologies aiming to reduce the amount of fossil fuel combusted by vehicle are induced by fuel prices. Thus, innovations in electric and hybrid propulsion, as well as innovations aimed at the improved fuel-efficiency are fostered by rising prices. At the same time, the estimation results suggest that innovative activity in the integrated emissions control is negatively... (More)
This paper empirically examines the relationship between fuel prices and patenting activity in environment-friendly technologies in the auto industry across the OECD countries for the period 1994-2011. Overall, the results suggest that tax-inclusive fuel price affects innovative activity in environment-friendly technologies. More specifically, the analysis shows that the technologies aiming to reduce the amount of fossil fuel combusted by vehicle are induced by fuel prices. Thus, innovations in electric and hybrid propulsion, as well as innovations aimed at the improved fuel-efficiency are fostered by rising prices. At the same time, the estimation results suggest that innovative activity in the integrated emissions control is negatively affected by fuel price and by the stringency of policies. Whereas innovations in post-combustion technologies are insensitive to price changes and are fostered by the toughening regulation. (Less)
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author
Sauchanka, Palina LU
supervisor
organization
course
EKHM52 20151
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Induced innovation, technological change, auto industry
language
English
id
7357994
date added to LUP
2015-06-25 12:33:25
date last changed
2015-06-25 12:33:25
@misc{7357994,
  abstract     = {This paper empirically examines the relationship between fuel prices and patenting activity in environment-friendly technologies in the auto industry across the OECD countries for the period 1994-2011. Overall, the results suggest that tax-inclusive fuel price affects innovative activity in environment-friendly technologies. More specifically, the analysis shows that the technologies aiming to reduce the amount of fossil fuel combusted by vehicle are induced by fuel prices. Thus, innovations in electric and hybrid propulsion, as well as innovations aimed at the improved fuel-efficiency are fostered by rising prices. At the same time, the estimation results suggest that innovative activity in the integrated emissions control is negatively affected by fuel price and by the stringency of policies. Whereas innovations in post-combustion technologies are insensitive to price changes and are fostered by the toughening regulation.},
  author       = {Sauchanka, Palina},
  keyword      = {Induced innovation,technological change,auto industry},
  language     = {eng},
  note         = {Student Paper},
  title        = {Fuel Prices and Environment-Friendly Innovations. Evidence from the Automobile Industry},
  year         = {2015},
}