The impact of intellectual property protection on energy efficiency: Evidence from OECD Countries

Motivated by the growing need to enhance energy efficiency while fostering innovation-led growth, understanding how institutional frameworks shape energy outcomes has become increasingly important for advanced economies. In this context, this study examines how intellectual property protection influences energy efficiency in OECD countries. Using panel data from 25 member economies over the period 1998 to 2017, the analysis employs two-way fixed effect model and quantile regression techniques. The empirical results show that stronger intellectual property protection improves energy efficiency. The quantile regression analysis further indicates that this positive effect is weaker among countries with relatively low initial efficiency levels. In addition, both economic policy uncertainty and environmental policy stringency strengthen the beneficial influence of intellectual property protection on energy efficiency. Trade is found to mediate the relationship, highlighting its role as a transmission channel through which protection contributes to efficiency gains. Building on these findings, the study offers several policy recommendations to support the design of effective innovation and energy strategies.