Abstract
In an effort to explore the potential for financing environmental innovation, this paper examines different forms of financing and attempts to evaluate their effectiveness. The study considers both public and private forms of funding as well as providing policy suggestions for the support of appropriate financing for eco-innovation.
Highlights
: The literature on the financing of innovation is very limited, and a virtually non-existent literature on the funding of eco-innovation in particular
This review aims to provide some direction for all agents, exploring the existing body of work on financing for innovation and drawing out the lessons relevant for environmental innovation
The economics literature has not focused on this issue in the past, so has little insight to offer on the relative merits of public versus private sources of funding for innovation
Summary
In an effort to explore the potential for financing environmental innovation, this paper examines different forms of financing and attempts to evaluate their effectiveness The study considers both public and private forms of funding as well as providing policy suggestions for the support of appropriate financing for eco-innovation. If we are unsure about the rate of innovation, we have difficulty predicting the pattern of global climate change, which makes it difficult to substantiate the reasons for further research funding. Fossil fuels receive roughly one-quarter of the federal funding, further limiting the impact of research funding on alternative energy sources. That poses a set of interrelated problems: if we are unsure about the rate of innovation, we have difficulty predicting the pattern of global climate change, which makes it difficult to substantiate the reasons for further research funding.
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