Impact of Carbon Pricing on Low-Carbon Innovation and Deep Decarbonisation

There is an ongoing discussion about the effectiveness of carbon pricing, with a strong division between optimists and pessimists. A recent review study by Lilliestam, Patt and Bersalli (2021) of the impact of carbon pricing on low-carbon innovation and deep carbonization concludes that there is no...

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Detalles Bibliográficos
Autores: Van den Bergh, Jeroen|||0000-0003-3415-3083, Savin, Ivan|||0000-0002-9469-0510
Tipo de recurso: artículo
Fecha de publicación:2021
País:España
Institución:Universitat Autònoma de Barcelona
Repositorio:Dipòsit Digital de Documents de la UAB
Idioma:inglés
OAI Identifier:oai:ddd.uab.cat:251951
Acceso en línea:https://ddd.uab.cat/record/251951
https://dx.doi.org/urn:doi:10.1007/s10640-021-00594-6
Access Level:acceso abierto
Palabra clave:Carbon tax
Emissions trading
Energy price
Induced innovation
Investment
Literature review
Descripción
Sumario:There is an ongoing discussion about the effectiveness of carbon pricing, with a strong division between optimists and pessimists. A recent review study by Lilliestam, Patt and Bersalli (2021) of the impact of carbon pricing on low-carbon innovation and deep carbonization concludes that there is no evidence for such an impact. We evaluate this study and identify various shortcomings of it, which together cast strong doubts on its main conclusion. Instead, we conclude, based on the studies reviewed by the authors and additional, overlooked literature, that carbon pricing has had a small but positive and significant effect on low-carbon innovation. Our evaluation provides lessons for undertaking a systematic and objective review of research on this topic. Since the main goal of carbon pricing is changing choices by firms and consumers that affect carbon emissions, we also point the reader towards recent evidence for the broader effectiveness of carbon pricing.