Introduction: Principles of environmental policy design in order to encourage 'green' innovation Stringency/Ambition – how ambitious is the policy objective relative to “BAU” Predictability/Credibility – how certain and credible is the signal given by the policy Flexibility – how much space is provided to identify new technologies and methods Incidence – how closely does the measure target the environmental bad or good Depth – does the measure provide incentives over the range of all possible outcomes Source: http://www.oecd-ilibrary.org/environment/environmental-policy-design-characteristics-and-technological-innovation_5kmjstwtqwhd-en

Examples Macro indicators Comunity Innovation Survey

ECOCO

ECOEN

Performances of specific Countries – Italy and Germany Static Analysis Main sector are obtained as: Sectorial VA Total country VA Dynamic Analysis Expanding and Shrinking sectors are obtained as: Sectorial VA (2000-2007) INGENIO PhD Days - Valencia 10/05/2013

INGENIO PhD Days - Valencia 10/05/2013 Main sectors (Share of total Value added) Italy - Main Sectors Sector VA/L Sox/VA CO2/VA EN.INT CIS EN.EFF CIS CO2 CIS WASTE Real Estate   Renting, R&D,Other Credit and Insurance Trade Not available Construction Germany - Main Sectors Machinery & Equipment INGENIO PhD Days - Valencia 10/05/2013

Italy – Rapidly and slowly increasing (Change VA) Italy - Top Expanding Sectors Sector VA/L Sox/VA CO2/VA EN.INT CIS EN.EFF CIS CO2 CIS WASTE Telecommunications   Credit and Insurance Electricity Supply Not available Real Estate Italy - Top Shrinking Sectors Textile Leather Air transport Rubber and Plastic INGENIO PhD Days - Valencia 10/05/2013

Germany – Rapidly / slowly increasing (Change VA) Germany - Top Expanding Sectors Sector VA/L Sox/VA CO2/VA EN.INT CIS EN.EFF CIS CO2 CIS WASTE Water Transport   Machinery & Equipment Telecommunications Auxiliary Transport Germany - Top Shrinking Sectors Wood Construction Not available Air Transport Petroleum Products INGENIO PhD Days - Valencia 10/05/2013

ECOEN Vs. CO2/VA

ECOCO Vs. CO2/VA

Renewables Source: IEA

Investment incentives Instrument Brief explanation Investment incentives Capital Grants and all other measures aimed at reducing the capital cost of adopting renewable energy technologies. Tax Measure Economic instruments used either to encourage production or discourage consumption. They may have the form of investment tax credit or property tax exemptions, in order to reduce tax payments for project owner. Incentive tariff Price systems that guarantee above market tariff rates. In such cases, the Environmental authority generally sets a premium price to be paid for power generated from renewables. Feed-in Tariff Guaranteed price that may vary by technology. (Wind, Solar, Ocean, Geothermal, Biomass, Waste, Hydro). Voluntary program These programs generally operate through agreement between government, public utilities and energy suppliers, that agree to buy energy generated from renewable sources.

Public Research and Development Obligations Obligation and targets take generally the form of quota systems that place an obligation on producers to provide a share of their energy supply from renewable energy. These quota are not necessarily covered by a tradable certificate. Tradable Certificate Renewable energy Certificates (REC) are used to track or document compliance with quota system and can generally be traded in specific markets. Public Research and Development Public financed R&D program disaggregated by type of renewable energy EU directive 2001/77/EC Established the first shared framework for the promotion of electricity from renewable sources at European level.

Patent Trends

Patent Trends

Waste