technical change framework. Unilateral policies alter the structure of production and thereby innovation incentives across … countries. Whenever feasible, optimal policies implement sustainable growth by directing global innovation to the nonpolluting … sector. If nonparticipants drive global innovation, this requires policies relocating clean production to nonparticipants. A …

This paper analyzes the effect of environmental policies on the direction of energy innovation across countries over … second regime, market-based policies are moderately effective in promoting renewable innovation, while command …-and-control policies depress fossil based innovation. Finally, market-based policies are more effective to consolidate a green comparative …