The empirical literature indicates that, in Phases I and II, the impact of the EU ETS on low-carbon innovation was moderate. The findings of one prominent study, which measures innovation output by patent counts, present a more clearly positive picture. • The empirical literature indicates that, in Phases I and II, low-carbon investments brought about by the EU ETS were typically small-scale, with short amortisation times (e.g., three to five years), producing incremental emission reductions. • In view of the EU’s long-term emission reduction targets, there is scope to improve the dynamic efficiency of the EU ETS by strengthening incentives for low-carbon innovation and investment. Tightening the cap and extending allowance auctioning in a predictable way are the most frequent recommendations in the literature. • There is a compelling economic case, related to innovation spill overs, scale and network economies, competitiveness preservation and energy security, for complementing the EU ETS with stronger R&D policies. • The Innovation Fund – the future EU ETS funding programme for low-carbon innovation – will build on the experiences gained through the existing NER 300 programme in several important respects.
Marcantonini, C., Teixido, J., Verde, S.F., Labandeira, X. (2017). Low-carbon innovation and investment in the EU ETS. In EUI RSCAS Policy Briefs.
Low-carbon innovation and investment in the EU ETS
Verde S. F.;
2017-01-01
Abstract
The empirical literature indicates that, in Phases I and II, the impact of the EU ETS on low-carbon innovation was moderate. The findings of one prominent study, which measures innovation output by patent counts, present a more clearly positive picture. • The empirical literature indicates that, in Phases I and II, low-carbon investments brought about by the EU ETS were typically small-scale, with short amortisation times (e.g., three to five years), producing incremental emission reductions. • In view of the EU’s long-term emission reduction targets, there is scope to improve the dynamic efficiency of the EU ETS by strengthening incentives for low-carbon innovation and investment. Tightening the cap and extending allowance auctioning in a predictable way are the most frequent recommendations in the literature. • There is a compelling economic case, related to innovation spill overs, scale and network economies, competitiveness preservation and energy security, for complementing the EU ETS with stronger R&D policies. • The Innovation Fund – the future EU ETS funding programme for low-carbon innovation – will build on the experiences gained through the existing NER 300 programme in several important respects.File | Dimensione | Formato | |
---|---|---|---|
2017 Marcantonini et al _Low-carbon innovation....pdf
accesso aperto
Tipologia:
PDF editoriale
Licenza:
PUBBLICO - Pubblico con Copyright
Dimensione
1.05 MB
Formato
Adobe PDF
|
1.05 MB | Adobe PDF | Visualizza/Apri |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
https://hdl.handle.net/11365/1182283