This study investigates the impact of public research and development (R&D) investment in energy technology on carbon intensity across 30 OECD countries from 1995 to 2020. The results of the empirical exercise, employing the IEA Energy Technology RD&D...
This study investigates the impact of public research and development (R&D) investment in energy technology on carbon intensity across 30 OECD countries from 1995 to 2020. The results of the empirical exercise, employing the IEA Energy Technology RD&D Budgets database, show that per capita CO₂ significantly decreases in the share of energy R&D investment relative to GDP. However, it takes two- to three years to see the effects of these investments. Our findings emphasize the role of carbon pricing mechanisms, such as emissions trading systems and carbon taxation. Robustness tests on the dynamic panel model confirm the impact of energy R&D on emissions reduction.