title: Public budgets for energy RD&D and the effects on energy intensity and pollution levels.
abstract: This study, based on the N-shaped cubic model of the environmental Kuznets curve, analyzes the evolution of per capita greenhouse gas emissions (GHGpc) using not just economic growth but also public budgets dedicated to energy-oriented research development and demonstration (RD&D) and energy intensity. The empirical evidence, obtained from an econometric model of fixed effects for 28 OECD countries during 1994-2010, suggests that energy innovations help reduce GHGpc levels and mitigate the negative impact of energy intensity on environmental quality. When countries develop active energy RD&D policies, they can reduce both the rates of energy intensity and the level of GHGpc emissions. This paper incorporates a moderating variable to the econometric model that emphasizes the effect that GDP has on energy intensity. It also adds a variable that reflects the difference between countries that have made a greater economic effort in energy RD&D, which in turn corrects the GHG emissions resulting from the energy intensity of each country.
authors.affiliation: Departament of Economía Política y Hacienda Pública, Estadística Económica y Empresarial, y Política Económica, Albacete, Spain, Daniel.Balsalobre@uclm.es.
authors.forename: Daniel
authors.initials: D
authors.lastname: Balsalobre
authors.forename: Agustín
authors.initials: A
authors.lastname: Álvarez
authors.forename: José María
authors.initials: JM
authors.lastname: Cantos
mesh_terms: D002017:Budgets; D003246:Conservation of Energy Resources; D004787:Environmental Pollution / Q000032:analysis / Q000191:economics / Q000517:prevention & control; D017752:Greenhouse Effect; D059066:Gross Domestic Product; D008962:Models, Theoretical; D012106:Research / Q000191:economics*