Examining the Influence of Climate Governance on Eco-Innovation: A Mixed-Methods Study

Effective climate governance can endorse a transition towards climate neutrality by catalyzing a transformation of the energy sector. Eco-innovation in renewable energies can facilitate this process while boosting economic competitiveness. Studies indicate that environmental policies and their interplay influence eco-innovation, but the strength of this effect varies widely and there is ongoing debate over underlying mechanisms. This explorative study seeks to answer: Which conditions does an environmental policy mix need to meet to promote high levels of eco-innovation? To analyze the relationship between policies and market activity, a comprehensive dataset has been created, covering all environmental and innovation-related policies from 1990 to 2020 for 21 OECD countries. Unlike previous studies that primarily used fiscal proxies or anecdotal evidence, this research provides a more in-depth analysis of the impact of environmental policies on eco-innovation. Economic, regulatory, and informational policy instruments will be differentiated to examine their intertemporal changes within the policy mix. By using PATSTAT patent data, the study will evaluate the impact of these policies on innovation in renewable energy. The research will employ a mixed-methods design and complement the empirical findings with in-depth interviews, thereby contributing to a greater understanding of how climate governance affects innovation activity.