@article{Nesta:268731,
      recid = {268731},
      author = {Nesta, Lionel and Verdolini, Elena and Vona, Francesco},
      title = {Threshold Policy Effects and Directed Technical Change in  Energy Innovation},
      address = {2018-02-26},
      number = {2070-2018-888},
      series = {04.2018},
      pages = {48},
      year = {2018},
      abstract = {This paper analyzes the effect of environmental policies  on the direction of energy innovation across countries over  the period 1990-2012. Our novelty is to use threshold  regression models to allow for discontinuities in policy  effectiveness depending on a country's relative  competencies in renewable and fossil fuel technologies. We  show that the dynamic incentives of environmental policies  become effective just above the median level of relative  competencies. In this critical 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 advantage  in the last regime. We illustrate how our approach can be  used for policy design in laggard countries.},
      url = {http://ageconsearch.umn.edu/record/268731},
      doi = {https://doi.org/10.22004/ag.econ.268731},
}