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Conference Agenda

Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).

Please note that all times are shown in the time zone of the conference. The current conference time is: 24th Aug 2026, 01:49:57am WEST

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Daily Overview

Session

Innovation and R&D
Location: B010
Session Chair: Yangfan Li, Tianjin University

Presentation 3

Green Innovation Beyond Patents: Technological Frontiers and Industrial Decarbonization in the EU ETS

Sylvain Belrose¹, Marc Baudry², Aliénor Cameron³

1: Chaire Economie du Climat , EDF R&D , Université Paris Nanterre, France; 2: Chaire Economie du Climat , Université Paris Nanterre, France; 3: OECD, Florence School of regulation, Florence

Discussant: Yangfan Li (Tianjin University)

On 29 January 2025, the European Commission unveiled the Competitiveness Compass, a set of policy guidelines highlighting the need to align industrial decarbonization and long-term competitiveness. Achieving this objective crucially depends on how firms' low-carbon innovations can translate into tangible emission reductions and efficiency gains. While existing literature recognizes the importance of innovation to develop or scale up low-carbon technologies, the link between firm-level green inventions and their real-world impacts on technological change, efficiency and emission levels has largely been overlooked. This paper investigates this relationship in the context of heavy industry firms regulated by the European Union Emissions Trading System from 2013 to 2020. In a first stage, efficiency and technological progress are assessed using a Technological Frontier Analysis, applied to emissions data from the EU Transaction Log and financial and operational data from ORBIS. In a second stage, a firm-level panel econometric model evaluates the effects of green patenting---measured using PATSTAT data---on firms' efficiency and technological progress. The results reveal that increases in non-low-carbon innovation are consistently associated with short-run efficiency gains and frontier advancement, reflecting incremental improvements in mature technologies. By contrast, low-carbon innovation is linked to technological progress only when embodied in new production facilities and over longer horizons, indicating that radical low-carbon innovation delivers larger but delayed efficiency gains.