Impact of domestic energy-efficiency policies on foreign innovation: The case of lighting technologies

• Published in: Energy policy Vol. 128; pp. 539 - 552
• Main Authors: Kim, Yeong Jae, Brown, Marilyn
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01-05-2019; Elsevier Science Ltd
• Subjects: Carbon; Clean technology; Demand; Economics of Innovation; Efficiency; Emission standards; Energy; Energy efficiency; Energy policy; Expenditures; Governance; Greenhouse effect; Greenhouse gases; Industrialized nations; Innovations; International economic organizations; International markets; International Technology Diffusion; Lighting; Markets; Negative Binomial Model; O33; Patenting; Performance standards; Power efficiency; Q54; Q55; Residential energy; Technology; Q55; Q54; O33; Economics of Innovation; International Technology Diffusion; Negative Binomial Model
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2019.01.032

Fostering the global development of low-carbon technology is crucial to mitigating greenhouse gas emissions. This paper analyzes the effect of energy-efficiency policies on lighting patenting between 1992 and 2007, using data for 19 OECD countries. We examine levels of energy-efficiency RD&D expenditures (representing a technology-push approach) and the stringency of energy-efficiency performance standards (representing a demand-pull approach). We find strong correlational evidence that both domestic demand-pull and technology-push policies positively affect domestic lighting patenting. We also provide strong correlational evidence that the demand-pull policy positively affects foreign lighting patenting; however, the technology-push policy does not. These findings suggest that demand-pull policies can help to transform international markets for low-carbon technology innovation, and they underscore the importance of the often-overlooked international dimension of domestic energy-efficiency policies. To the extent that our findings are generalizable, our research suggests that governance processes that strengthen energy performance standards and steady investment in RD&D could spur energy innovation in industrialized nations across the world.
•We examine the impact of domestic energy policies on foreign lighting patenting.•Demand-pull policy can have trans-national spillover effects.•Demand-pull policies can help to transform clean technology international markets.•The international dimension of domestic energy-efficiency policies is important.