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Reforming Rules and RegulationsLaws, Institutions, and Implementation$
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Vivek Ghosal

Print publication date: 2010

Print ISBN-13: 9780262014687

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262014687.001.0001

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Environmental Policy Design and the Fragmentation of International Markets for Innovation

Environmental Policy Design and the Fragmentation of International Markets for Innovation

Chapter:
(p.79) 4 Environmental Policy Design and the Fragmentation of International Markets for Innovation
Source:
Reforming Rules and Regulations
Author(s):

Nick Johnstone

Ivan Haščič

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262014687.003.0004

This chapter argues that the more flexible an individual country's environmental policy regime the more likely it is to fuel innovations that can find markets overseas. Drawing on a database of patent applications from a cross section of countries, it shows the positive effect of “flexibility” of the domestic environmental policy regime on the propensity for inventions to be diffused widely in the world economy. It develops a measure of international technology transfer for technologies relating to the mitigation of air and water pollution and solid waste management. Empirical analysis results confirm the positive role of policy flexibility on international technology transfer.

Keywords:   environmental policies, innovation, patents, flexibility, international technology transfer, pollution control, solid waste management

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