Do market-based environmental policies encourage innovation in energy storage?

Using firm-level patent data from 1978 to 2015, I examine the impact of market-based environmental policies on innovation in energy storage. My results highlight the role of environmental taxes, feed-in tariffs for solar energy and tradable certificates for CO 2 emission to promote firms' patenting activity, whereas renewable energy certificates and energy efficiency certificates discourage it. These results imply the need for more stringent market-based environmental policies to incentivize innovation in energy storage. [ABSTRACT FROM AUTHOR]