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Green Innovation and Diffusion: Policies to Accelerate Them and Expected Impact on Macroeconomic and Firm-Level Performance
Author:
Ms. Zeina Hasna
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Ms. Florence Jaumotte https://isni.org/isni/0000000404811396 International Monetary Fund

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Jaden Kim
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Samuel Pienknagura https://isni.org/isni/0000000404811396 International Monetary Fund

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Gregor Schwerhoff
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Series:
Staff Discussion Notes
Volume/Issue:
Volume 2023: Issue 008
Language:
English
Publication Date:
06 Nov 2023
DOI:
https://doi.org/10.5089/9798400256950.006
ISBN:
9798400256950
ISSN:
2617-6750
Pages:
31
Keywords:
Low-carbon technologies; green innovation; technological diffusion and deployment; environmental policies; economic performance; portfolio exhibit; green FDI inflow; Policy implication; LCT trade; policy coordination; Climate policy; Foreign direct investment; Emerging and frontier financial markets; Climate change; Global
Legal-disclaimer:
Staff Discussion Notes (SDNs) showcase policy-related analysis and research being developed by IMF staff members and are published to elicit comments and to encourage debate.The views expressed in this Policy Discussion Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.
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Innovation in low-carbon technologies (LCTs), which is essential in the fight against climate change, has slowed in recent years. This Staff Discussion Note shows that a global climate policy strategy can bolster innovation in, and deployment of, LCTs. Countries that expand their climate policy portfolio exhibit higher (1) climate-change-mitigation-patent filings, (2) LCT trade flows, and (3) “green” foreign direct investment flows. Importantly, boosting innovation in, and deployment of, LCTs yields medium-term growth, which mitigates potential costs from climate policies. This note stresses the importance of international policy coordination and cooperation by showcasing evidence of potential climate policy spillovers.
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Cover Staff Discussion Notes
Staff Discussion Notes
ISSN:
2617-6750
Publisher:
International Monetary Fund