To attain the objective of slowing down global warming, countries strive to reduce greenhouse gas (GHG) emissions via innovation. While prior studies focus on general environmental innovation and carbon emission, there has been no research on the varying effects of different innovation...

We evaluate the role of a fossil fuel tax and research subsidy in directing innovation from fossil fuel toward renewable energy technologies in the electricity sector. Using a global firm-level electricity patent database from 1978 to 2011, we find that the impact of fossil fuel taxes on...