Data and Code for: Environmental Preferences and Technological Choices: Is Market Competition Clean or Dirty?

We investigate the effects of consumers' environmental concerns and marketcompetition on firms' decisions to innovate in "clean" technologies. Agents care about their consumptionand environmental footprint; firms pursue greener products to soften pricecompetition. Acting as complements, these forces determine R&D, pollution,and welfare. We test the theory using panel data on patents by 8,562automobile-sector firms in 41 countries, environmental willingness-to-pay,and competition. As predicted, exposure to prosocial attitudes fosters cleaninnovation, all the more so where competition is strong. Plausible increasesin both together can spur it as much as a large fuel-price increase.