The effects of climate policy on the rate and direction of innovation: A survey of the EU ETS and the electricity sector

► The mis-design of the early EU ETS led to increased adoption of fossil technologies. ► ETS 3 had only limited effects on the rate and direction of corporate innovation. ► Conversely, long-term emission reduction targets were an important trigger of RD&D. ► We provide recommendations for revising the policy mix (including technology policies).