Do Market-Based Environmental Policies Encourage Innovation in Energy Storage?

Using firm-level patent data from 1978 to 2015, I examine the impact of market-based environmental policies on innovation in energy storage. My results highlight the role of environmental taxes, feed-in tariffs for solar energy and tradable certificates for CO2 emission to promote firms’ patenting activity, whereas renewable energy certificates and energy efficiency certificates discourage it. These results imply the need for more stringent market-based environmental policies to incentivize innovation in energy storage