Localized Innovation, Localized Diffusion and the Environment: An Analysis of CO2 Emission Reductions by Passenger Cars, 2000-2007
Bart Los & Bart Verspagen
#2008-037
We investigate technological change with regard to CO2 emissions by
passenger cars, using a Free Disposal Hull methodology to estimate
technological frontiers. We have a sample of cars available in the UK
market in the period 2000 – 2007. Our results show that the rates of
technological change (frontier movement) and diffusion (distance to
frontier at the car brand level) differ substantial between segments of
the car market. We conclude that successful policies should be aimed at
diffusion of best-practice technology, and take account of the different
potential for further progress between different segments of the market
(e.g., diesel and gasoline engines, and small vs. large engines).
JEL Codes: Q55, O31, O33
Key words: CO2 emissions by cars; technological change; diffusion of
innovations
UNU-MERIT Working Papers
ISSN 1871-9872