Effects of environmental policy on the type of innovation

Abstract

This article uses patent data to assess policy factors (domestic and international) for patenting activity in automotive emission control technologies. Particular attention is paid to the role of different policy types and fuel prices on both post-combustion and integrated abatement technologies. The results confirm that fuel prices have played a role in the development of integrated strategies, while regulatory standards have been more important with respect to post-combustion technologies.  In addition, ‘integrated’ abatement strategies are more closely linked to general determinants of innovation than is the case for post-combustion technologies. This has implications for the design of policies which encourage innovations with both private and public benefits.