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Toward sustainable development: Does the rising oil price stimulate innovation in climate change mitigation technologies?

Authors :
Wang, Jun-Zhuo
Feng, Gen-Fu
Yin, Hua-Tang
Chang, Chun-Ping
Source :
Economic Analysis and Policy; September 2023, Vol. 79 Issue: 1 p569-583, 15p
Publication Year :
2023

Abstract

Existing research concerning determinants of climate change mitigation technology (CCMT) development mainly focuses on the role of climate policy, environmental awareness, or R&D intensity. What has been rarely noticed is that the oil price, as an indication of primary energy costs, can make countries with high energy intensity lean toward renewable energy consumption and invest more in the innovation activities of CCMT. Employing a panel investigation of 30 economies from 1990 to 2019, We find strong evidence that rising oil prices promote CCMT performance. The positive effect of increased oil prices on CCMT is imposed by lowering energy intensity, increasing renewable energy consumption, and promoting energy-technology R&D. Such an impact is more pronounced for CCMT related to energy generation and efficiency, greenhouse gas emissions, and transportation. To obtain more concrete policy implications, we also explore heterogeneities of this promoting effect across different levels of economic development and oil dependence.

Details

Language :
English
ISSN :
03135926
Volume :
79
Issue :
1
Database :
Supplemental Index
Journal :
Economic Analysis and Policy
Publication Type :
Periodical
Accession number :
ejs63404448
Full Text :
https://doi.org/10.1016/j.eap.2023.06.034