Innovation and public policy in solar energy: An econometric study based on patent counts

University essay from Luleå/Department of Business Administration, Technology and Social Sciences

Author: Kristoffer Bäckström; [2012]

Keywords: Patent; Patentstudie; Innovation; Solenergi; Solenergiteknik; Miljöekonomi; Nationalekonomi; Hicks; Schumpeter; Hickshypotesen; Klimatpolitiska styrmedel; Miljöpolitiska styrmedel; Styrmedel; Inmatningstariffer; FoU-utgifter; Gröna elcertifikat; Ekonometri;

Abstract: The aim of this thesis is to examine the differential effects of public policies on
innovations within solar energy technologies. Panel data comprising of 13 countries and
31 years (1978-2008) has been employed for this issue. The study has been restricted to
solar photovoltaic (PV) technology and the policies feed-in tariffs (FIT’s), tradable
green certificates (TGC’s) and public research, development and demonstration
(RD&D) expenditures. Since an innovation cannot be measured in itself, patent counts
within solar PV technology have been employed to approximate innovations (the main
idea is to test the patenting effects of policies). The econometric results suggest that
innovations are dependent on FIT’s, TGC’s and RD&D expenditures. The highest
innovation effects are attributed to TGC’s while RD&D expenditures tend to induce
more innovations than FIT’s. The empirical evidence also suggests that the RD&D
policy support induces more innovations whenin force simultaneously with a FIT or
TGC policy.

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