Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper investigates the effect of Climate Change Policies (CCPs) on green innovation, for a sample of 40 advanced and emerging market economies, and five economic sectors, during the period 2000–2021. Our results suggest that CCPs positively affect the production of green patents, with the effect intensifying gradually over time. The effect is larger for non-market-based and technology support policies—such as emission limits, feed-in tariffs and R&D subsidies—in countries with greater competitiveness and during periods of stronger economic activity—that is, higher GDP growth, lower uncertainty and financial stress. The results based on a difference-in-differences approach suggest that the positive effect of stricter CCPs on green innovation is stronger in sectors with limited financial constraints.