Jump to ContentJump to Main Navigation
Sovereign Wealth Funds and Long-Term Investing$
Users without a subscription are not able to see the full content.

Joseph Stiglitz, Patrick Bolton, and Frederic Samama

Print publication date: 2011

Print ISBN-13: 9780231158633

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231158633.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 13 November 2019

Influencing Clean Innovations

Influencing Clean Innovations

Chapter:
(p.164) Influencing Clean Innovations
Source:
Sovereign Wealth Funds and Long-Term Investing
Author(s):

Philippe Aghion

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231158633.003.0036

Empirical analysis of innovation and patenting in the automotive industry has shown the existence of a so-called path dependence in the direction of technical change. Specifically, a study of the dynamic of patenting in clean versus fuel-consuming cars showed that individuals or companies that have in the past pursued dirty innovations tend to continue to innovate along that path. This in turn suggests a role for government intervention: namely, to redirect technical change from dirty to clean innovation. Without intervention, not only will there be more pollution by car producers and other fuel-consuming industries, but the technological gap between dirty and clean innovation will increase, thereby making it more costly to intervene tomorrow. This chapter argues that efficient dynamic allocation can be implemented by a combination of the carbon tax (which directly deals with current environmental externalities) and research subsidies to clean innovation and the diffusion of clean technologies (to deal with the knowledge externality and with environmental externalities in the future).

Keywords:   automotive industry, innovation, patenting, technical change, carbon tax, research subsidies, clean technologies

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .