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2018 | OriginalPaper | Buchkapitel

5. The Crowding-Out Effect of Green Energy Innovation

verfasst von : Özgür Arslan-Ayaydin, James Thewissen, Wouter Torsin

Erschienen in: Energy Economy, Finance and Geostrategy

Verlag: Springer International Publishing

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Abstract

The U.S. government annually invests $700 million in the research and development of green energy. Yet, the question whether corporate research in green energy leads to increased corporate performance remains unanswered. Based on a sample of 130,000 patents granted by 212 U.S. firms between 1975 and 2006, this chapter tests and compares the impact of green and non-green energy innovation on firms’ financial performance and value. While innovation increases firm performance and value, we find that innovation in green energy has a significant and negative impact on future operating performance and reduces firm value. These results suggest that firms crowd out more profitable non-green projects for green innovation, thereby reducing their value and performance. We further find that investors understand this crowding-out effect of green innovation, as the market reacts negatively around and after the granting date of green energy patents.

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Titel: The Crowding-Out Effect of Green Energy Innovation
verfasst von: Özgür Arslan-Ayaydin
James Thewissen
Wouter Torsin
Verlag: Springer International Publishing
Buch: Energy Economy, Finance and Geostrategy
Print ISBN: 978-3-319-76866-3

Electronic ISBN: 978-3-319-76867-0

Copyright-Jahr: 2018
DOI: https://doi.org/10.1007/978-3-319-76867-0_5

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