Innovation under the Climate Wise program

This paper examines the impact of participation in the Climate Wise program, one of the largest voluntary programs enacted in the US, on innovative activity by firms. In operation from 1993 to 2000, the Climate Wise program was designed to reduce greenhouse gas emissions by promoting innovation in energy efficiency and energy related activities. We begin by examining what types of firms were most likely to participate in this voluntary initiative. We find that the Climate Wise program was attractive to large firms, more R&D intensive firms, and firms with more financial resources. To consider the impact of Climate Wise participation on the innovative behavior of firms, we investigate whether participants and non-participants differed in the number of successful environmental and non-environmental patent applications between 1993 and 2003. We find some evidence that participation in the Climate Wise leads to a change in environmental patenting but only among less R&D intensive firms. (C) 2013 Elsevier B.V. All rights reserved.