BONNET Clement

Innovation in low-carbon energy technologies is hampered, on the one hand, by environmental externalities and, on the other, by knowledge externalities. These market failures need to be corrected by government intervention. The objective of this thesis is to establish the conditions for an efficient support to innovation in low-carbon energy technologies. The research work conducts theoretical analyses on the treatment of these market failures in conjunction with empirical evaluations of the policies to support innovation in these technologies that have been implemented so far. This thesis is structured in five chapters. Chapter 1 questions the need for policies specifically dedicated to innovation in low-carbon energy technologies, as opposed to government support for innovation that does not discriminate between these technologies and others. A review of the economic instruments put in place so far is then proposed and indicates the predominance of demand-side rather than supply-side support for innovation in these technologies. Chapter 2 narrows the analysis to demand-side support instruments. A micro-founded diffusion model is used to conduct a counterfactual analysis evaluating the effects of these instruments on the diffusion of wind technology in six European countries. Chapter 3 develops an econometric method for measuring the knowledge generated in low-carbon energy technologies. Using a common latent factor model, we estimate a quality index of patented inventions between 1980 and 2010, in fifteen types of technologies and in six innovating countries. Chapter 4 revisits the question of the optimal design of the patent system when it addresses a process invention whose remuneration depends on policies for pricing environmental externalities. Chapter 5 summarizes our results and deduces the main messages.