Environmental policy and innovation: A decade of research

Research output: Contribution to journalArticlepeer-review

42 Scopus citations


Innovation is an important part of environmental policy, and encouraging innovation is often an explicit goal of policymakers. A large literature in environmental economics examines the links between environmental policy and innovation. Popp et al. (2010) provides an extensive review of the literature on environmental innovation. This paper updates that review, highlighting research published during the past decade, with a focus on empirical research examining links between environmental policy and environmentally friendly innovation. I highlight major trends in the literature, including an increased number of cross-country studies and a focus on the effect of different policy instruments on innovation. I include a discussion of the justifications and evidence for technology-specific policy incentives and present evidence on the effectiveness of government R&D spending. My review concludes with a discussion of three promising areas for new research on environmental innovation.

Original languageEnglish (US)
Pages (from-to)265-337
Number of pages73
JournalInternational Review of Environmental and Resource Economics
Issue number3-4
StatePublished - Sep 18 2019


  • Climate change
  • Energy efficiency
  • Green innovation
  • Induced innovation
  • Pollution
  • Renewable energy
  • Research and development
  • Technology policy

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics
  • Management, Monitoring, Policy and Law


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