The aim of the paper is to investigate the effect of environmental stringency on innovation and productivity using a … innovation can be one of the channels through which higher sectoral productivity can be reached. The main findings suggest that … downstream stringency is the most relevant driver for innovation and that most of the effect of regulation on productivity is …

innovation distinguishing between “dirty” (internal combustion engine) and “clean” (e.g. electric and hybrid) patents across 80 … tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers … and from the firm's own innovation history. Using our model we simulate the increases in carbon taxes needed to allow …