that sector but discourages innovation in the upstream sector because of a market size effect. Hence, higher patent … some innovation is socially desirable, optimal patent protection is necessarily higher in the upstream than in the …This article addresses the issue of optimal patent protection in an economy with a downstream and an upstream sector …

We analyze the use of patent protection as a new policy to direct technical change to clean technology. Contrary to … popular belief, it is dirty (and not clean) innovations that should be excluded from patent protection to reduce emissions. In … the shortrun, removing patent protection on dirty technology increases emissions. However, the reduced markup on dirty …