Green Innovation and Diffusion

Download or read book Green Innovation and Diffusion written by Ms. Zeina Hasna and published by International Monetary Fund. This book was released on 2023-11-06 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.