Incentives For Technological Innovation Research Articles

The Effects of Urbanization on Urban Land Green Use Efficiency of Yangtze River Delta Urban Agglomeration: Mechanism from the Technological Innovation

It is urgent and essential to explore the facilitating mechanism of urban land green use efficiency (ULGUE) in promoting the coordinated development of humans and land. In this study, the SBM-DEA model was used to measure ULGUE from 26 cities across the Yangtze River Delta Urban Agglomeration (YRDUA) in China from 2006 to 2019. Desired (eco-friendly) outputs and undesired (non-eco-friendly) green outputs were considered in the selection of ULGUE indicators. This study explored the impact of the mechanism of green, digital, and transportation technological innovation on ULGUE in the process of urbanization by the mediation model. The results showed that urbanization has a positive effect on ULGUE and technological innovation, and for every 1% increase in urbanization, ULGUE increases by 0.048%. The results are still significant after robustness tests. The findings suggest that the improvement of social and economic benefits brought by urbanization in the YRDUA is greater than its negative impact. A mechanistic analysis showed that green, digital, and transportation technological innovation can amplify the positive impact by curbing the growth of energy consumption and alleviating pollution. Therefore, the government should promote ULGUE with technological innovation, construct an ULGUE assessment mechanism, incorporate the promotion of green land use into the planning of targets and incentives for technological innovation, and promote the efficient use of land.

Nexus between green investment and technological innovation in BRI nations: What is the role of environmental sustainability and domestic investment?

The critical role of technological innovation has been extensively investigated by considering various aspects of macro-fundamentals across the world. Although the determents of technological innovation have been investigated predominantly from the perspective of firms, the role of macro-fundamentals is yet to be extensively explored. The aim of the study is to investigate the effects of green investment, measured by renewable energy; domestic investment measured by gross capital formation; and environmental sustainability measured by carbon emission on technological innovation in BRI nations for the period 2000–2021. The study used a cross-sectional dependency test, a unit root test following CADF and CIPS, an error correction-based panel cointegration test, ARDL, CS-ARDL, and a nonlinear ARDL. Furthermore, the directional causalities were documented by performing the heterogeneous causality test. Taking into account the findings of the study, it is revealed that green investment and domestic investment are positively connected with technological innovation in BRI nations, while environmental sustainability is correlated negatively and statistically significant to technological innovation. Furthermore, the asymmetric investigation established asymmetric effects from green investment, environmental sustainability, and domestic investment to technological innovation. According to the asymmetric coefficients, the positive and negative shocks of green and domestic investment disclosed positive and statistically significant links with technological innovation, whereas the asymmetric shocks in environmental sustainability revealed adverse ties to technological innovation in BRI nations. The study documented the unidirectional causal effects from green investment to technological innovation [GI→TI] and technological innovation to environmental sustainability [TI→ES]. Furthermore, the study documented bidirectional casualties between domestic investment, foreign direct investment, financial development, and technological innovation [TI←→DI; TI←→FDI; TI←→FD]. The study suggested that domestic capital formation and environmental protection in BRI nations should be actively promoted to accelerate technological innovation. Furthermore, the study postulated that investment in research and development should be encouraged with incentives for technological innovation.

Designing Climate Mitigation Policy

This paper provides (for the nonspecialist) a highly streamlined discussion of the main issues, and controversies, in the design of climate mitigation policy. The first part of the paper discusses how much action to reduce greenhouse gas emissions at the global level is efficient under both the cost-effectiveness and welfare-maximizing paradigms. We then discuss various issues in the implementation of domestic emissions control policy, instrument choice, and incentives for technological innovation. Finally, we discuss alternative policy architectures at the international level. (JEL Q54, Q58)

How much should society fuel the greed of innovators?: On the relations between appropriability, opportunities and rates of innovation

The paper attempts a critical assessment of both the theory and the empirical evidence on the role of appropriability and in particular of Intellectual Property Rights (IPRs) as incentives for technological innovation. We start with a critical discussion of the standard justification of the attribution of IPR in terms of “market failures” in knowledge generation. Such an approach, we argue, misses important features of technological knowledge and also neglects the importance of non-market institutions in the innovation process. Next, we examine the recent changes in the IPR regimes and their influence upon both rates of patenting and underlying rates of innovation. The evidence broadly suggests that, first, IPRs are not the most important device apt to “profit from innovation”; and second, they have at best no impact, or possibly even a negative impact on the underlying rates of innovation. Rather, we argue, technology- and industry-specific patterns of innovation are primarily driven by the opportunities associated with each technological paradigm. Conversely, firm-specific abilities to seize them and “profit from innovation” depend partly on adequacy of the strategic combinations identified by the taxonomy of [Teece, D., 1986. Profiting from technological innovation: implications for integration, collaboration, licensing and public policy. Research Policy 15, 285–305.] and partly on idiosyncratic capabilities embodied in the various firms.

ECONOMICS OF POLLUTION TRADING FOR SO2AND NOX

▪ Abstract For years economists have urged policy makers to use market-based approaches such as cap-and-trade programs or emission taxes to control pollution. The sulfur dioxide (SO2) allowance market created by Title IV of the 1990 U.S. Clean Air Act Amendments represents the first real test of the wisdom of economists’ advice. Subsequent urban and regional applications of nitrogen oxides (NOx) emission allowance trading took shape in the 1990s in the United States, culminating in a second large experiment in emissions trading in the eastern United States that began in 2003. This review provides an overview of the economic rationale for emissions trading and a description of the major U.S. programs to reduce SO2and NOxpollution. We evaluate these programs along measures of performance, which include cost savings, environmental integrity, and incentives for technological innovation. We offer lessons for the design of future programs including, most importantly, those to reduce carbon dioxide.