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The imperative for sustainable development demands innovative solutions to address the environmental impact of transportation, particularly in the context of climate change. This study explores the intersection of renewable energy and sustainability within the automotive industry by examining how restrictions on the sale of gasoline-powered vehicles affect patent filings related to automotive engine technologies. Our approach employs a factorial analysis to capture structural shifts in patent filings, utilizing the logarithmic mean Divisia index for index decomposition. We scrutinize patent trends from 1985 to 2019, with a focus on both non-green (internal combustion engine vehicles) and green technologies (battery electric, hybrid electric, and full cell vehicles), to assess the transition towards sustainable transportation. This study also scrutinizes the patenting activities of four major patent offices—China, Japan, the United States, and Germany—to unveil global trends and disparities in sustainable technology innovation. Our findings underscore how a nation’s green investment strategy is contingent upon its developmental stage, with intellectual property rights and R&D incentives playing pivotal roles in shaping R&D landscapes, especially in emerging economies with nascent intellectual property markets. This study also reveals varying strategies for developing green automotive engines across nations, indicating that the growth of green patents in developed countries is probably spurred by financial incentives and enhanced intellectual property rights to promote specific tech advancements. This research contributes to the discourse on sustainability by highlighting the critical role of policy in fostering green technology development and the importance of aligning patent strategies with environmental goals.
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