JOURNAL ARTICLE

Environmental policy and R&D productivity: A case study from the Korean Emissions Trading Scheme.

  • Published In: Science & Public Policy (SPP), 2023, v. 50, n. 1. P. 120 1 of 3

  • Database: Academic Search Ultimate 2 of 3

  • Authored By: Mo, Jung Youn 3 of 3

Abstract

This article investigates the impact of the Korean Emissions Trading Scheme (KETS) on Research and Development (R&D) productivity in manufacturing industries, estimating total factor R&D productivity (TFRP) using a stochastic frontier analysis (SFA) that incorporates sales, patent applications, and carbon emissions as outputs. The study finds that while overall R&D productivity in Korea has declined, the introduction and strengthening of KETS since 2015 have accelerated its growth trend, with environmental policy stringency positively influencing R&D productivity. Industry-specific analysis reveals variation in productivity changes, with the display industry showing increases and textile/apparel and nonferrous metals experiencing declines. Panel data regression confirms that both phases of KETS implementation significantly enhance R&D productivity, particularly under the more stringent second phase involving auctions and banking restrictions. The study suggests that robust environmental policies like emissions trading can stimulate technological innovation and recommends targeted government support for high-emission industries to further improve R&D productivity.

Additional Information

  • Source:Science & Public Policy (SPP). 2023/02, Vol. 50, Issue 1, p120
  • Document Type:Article
  • Subject Area:Politics and Government
  • Publication Date:2023
  • ISSN:0302-3427
  • DOI:10.1093/scipol/scac053
  • Accession Number:162026232
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