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Environmental and Resource Economics
Article . 2021 . Peer-reviewed
License: CC BY
Data sources: Crossref
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Environmental and Resource Economics
Article
License: CC BY
Data sources: UnpayWall
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Impact of Carbon Pricing on Low-Carbon Innovation and Deep Decarbonisation: Controversies and Path Forward

Controversies and Path Forward
Authors: Jeroen C.J.M. van den Bergh; Ivan Savin; Ivan Savin;

Impact of Carbon Pricing on Low-Carbon Innovation and Deep Decarbonisation: Controversies and Path Forward

Abstract

AbstractThere 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.

Countries
Spain, Russian Federation, Netherlands, Russian Federation, Netherlands
Keywords

INVESTMENT, CARBONIZATION, Energy price, EMISSIONS TRADING, CARBON, CARBON PRICING, SDG 13 - Climate Action, CARBON TAX, ENERGY PRICE, LITERATURE REVIEW, Literature review, CARBON EMISSIONS, LOW CARBON, INDUCED INNOVATION, CARBONISATION, Induced innovation, Emissions trading, Carbon tax, Investment, COSTS

  • BIP!
    Impact byBIP!
    citations
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    46
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Top 10%
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Top 1%
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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
46
Top 10%
Top 10%
Top 1%
Green
hybrid