The purpose of this project is the analysis of the impact of the implementation of European carbon market on the innovation of technologies allowing reducing carbon emissions (energy efficiency, etc).
The project will rely on a patent database in order to answer to the following questions: has the European Union Emission Trading System (ETS) encouraged innovation in “green” technologies in European companies? Did ETS also have an impact on unregulated companies? Has the new regulation been anticipated by companies? Which are the features of innovative companies? Are the investments in “green” R&D made to the expense of research investments in different types of technologies?

At an international level, it will allow to analyze whether the European carbon market induced the transfer to Europe of foreign technologies and if innovative European companies export their innovations to other countries.

The project is made of four modules:

1. Creating a database including CO2 emissions of companies covered by ETS, quotas to which they are submitted, patents filed by these companies, and other interesting variables.
2. Descriptive analyses allowing developing an overview on innovation and distribution of technologies able to reduce CO2 emissions in Europe, before and after implementation of carbon market.
3. Quantitative empirical analyses on the impacts of ETS on the innovation, especially in the energy production field.
4. A synthesis to formulate recommendations, especially on the way to promote innovation in carbon-saving technologies in mitigation policies.