Spillover from private energy research

► Relative high subsidies to private energy research may be motivated by high knowledge spillovers from private energy research. ► Using firm data we reject that there are higher spillovers from private energy research compared to other private research. ► Knowledge spillovers from private energy research may even be lower compared other types of private research. ► This suggests that high subsidies to private energy research should not be an element in a first best CO2 policy.