Financing Renewable Energy: Who Is Financing What and Why it Matters

Mazzucato, Mariana; Semieniuk, Gregor

doi:10.2139/ssrn.2796552

Cited by 36 publications

(37 citation statements)

References 64 publications

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“…Wüstenhagen et al [41] × × × Hancock [35] × × × Betsill and Stevis [24] × × × Michalena and Hills [32] × × × × Hills and Michalena [33] × × Mazzucato and Semieniuk [34] × × × Park [42] × × × Notes: Government includes states, governments, public agencies, politicians, policy-makers, bureaucrats, local governments and sub-governmental organizations, etc. ; Public includes communities, households, families, residents, neighbors, civil societies, community groups and academia, etc.…”

Section: Narrow Renewable Energymentioning

confidence: 99%

“…There are differences between the literature on social change (e.g., [17,22,[27][28][29]), energy transition (e.g., [25,30,31]) and renewable energy (e.g., [24,[32][33][34]) in terms of their study settings, scope, themes and interests. Nonetheless, they commonly focus on the transition towards a better society: discussing the requirements of a constantly evolving and collective process involving multiple actors in society and utilizing social learning to address societal challenges and/or needs.…”

Section: Introductionmentioning

confidence: 99%

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Who Drives the Transition to a Renewable-Energy Economy? Multi-Actor Perspective on Social Innovation

Sung

Park

2018

Sustainability

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This study examines how various actors influence the transition to a renewable-energy economy. We employ a conceptual framework derived from a literature review and text-mining analysis and establish a panel data model for an empirical test using unbalanced panel data from 25 member countries of the Organization for Economic Co-operation and Development (OECD), for the period from 1990 to 2014. We establish a panel vector autoregressive (VAR) model in the first differences and use a bias-corrected least squares dummy variable (LSDVC) estimator to test complex dynamic relationships between government, the public, markets, the traditional energy sector (i.e., the sector that uses nuclear power, oil, coal and natural gas as sources for electricity) and the contribution of renewables to the total energy supply. We also perform Wald tests on the coefficients of variables estimated by LSDVC estimator to determine causal relationships between the variables. The results of this study reveal that government and markets directly promote the transition to renewable energy, whereas the traditional energy sector negatively and directly affects the transition. By contrast, the public does not directly influence the transition to a renewable-energy economy. This study also shows that the government and public have positive indirect effects on the transition, by interacting with the market. We also find convincing evidence of significant dynamic-path dependence in all estimations. Finally, we discuss some implications based on the findings of this study.

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Section: Narrow Renewable Energymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Who Drives the Transition to a Renewable-Energy Economy? Multi-Actor Perspective on Social Innovation

Sung

Park

2018

Sustainability

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“…41 In the next ten years, there is still very large potential for cost reduction for the currently most deployed technologies: solar PV, parabolic trough collectors concentrating solar power (PTC CSP), solar tower concentrated solar power (ST CSP), onshore and offshore wind generation (see Table A1). These areas represented 80 per cent of overall investment in renewable generation technology between 2004 and 2014 (Mazzucato & Semieniuk, 2016). By the beginning of 2017, the chairman and chief editor of Bloomberg New Energy Finance together announced that, on an LCOE basis, renewable energy has achieved the long-awaited goal of grid competitiveness, undercutting all other sources of new generating capacity in many countries (Liebreich & McCrone, 2017).…”

Section: Res Technology Development Potentialmentioning

confidence: 99%

“…A more granulated look at the asset finance between 2004 and 2014 reveals more investor sub-types (Table A2). A comparison of the risk exposure of their investment portfolios suggests that, among private investors, commercial banks and non-financial non-energy firms take on more risky investments, while energy firms and institutional investors are low risk takers (Mazzucato & Semieniuk, 2016). An empirical study on the cognitive and behavioural drivers of investment decisions has found that investors' prior beliefs about the technical adequacy of the RES technology being considered, accumulated from their personal history, education, and previous experience with renewable energy investment, play a more important role in driving investment than the perceived effectiveness of existing policies.…”

Section: Preference Of Conventional and Unconventional Investorsmentioning

confidence: 99%

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Electricity market design for a decarbonised future

Poudineh¹,

Peng²

2017

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In recent years, the debate on electricity market design in the EU has focused on the fitness-for-purpose of the existing dominant design, the appropriateness of energy policy that underpins the existing market design, and on the process through which energy policy is coordinated with market design. In this paper, we contribute to this debate on all three levels. First, we propose a 'module-and-level'-based framework to illustrate our diagnosis of coordination issues present in the EU's power markets. We apply this framework to make a systematic identification of existing misalignments between the components of current market design and physical RES integration/financial RES support schemes. Secondly, we argue that the role of energy policy is not just in managing existing trade-offs between competitiveness, sustainability, and reliability, but also in encouraging innovations that increase the compatibility of energy policy objectives in the future. Finally, we propose a seven-step condition-dependent evolution of power market design, where the government/regulatory authority plays the role of meta-coordinator, matching the adaptation of market-based coordination modules with a hybrid future where distributed energy resources coexist with centralised generation, while decentralised market participants trade with each other and with incumbents.

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Low‐carbon transition risks for finance

Semieniuk

Campiglio

Mercure

et al. 2020

WIREs Climate Change

Self Cite

215

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The transition to a low‐carbon economy will entail a large‐scale structural change. Some industries will have to expand their relative economic weight, while other industries, especially those directly linked to fossil fuel production and consumption, will have to decline. Such a systemic shift may have major repercussions on the stability of financial systems, via abrupt asset revaluations, defaults on debt, and the creation of bubbles in rising industries. Studies on previous industrial transitions have shed light on the financial transition risks originating from rapidly rising “sunrise” industries. In contrast, a similar conceptual understanding of risks from declining “sunset” industries is currently lacking. We substantiate this claim with a critical review of the conceptual and historical literature, which also shows that most literature either examines structural change in the real economy, or risks to financial stability, but rarely both together. We contribute to filling this research gap by developing a consistent theoretical framework of the drivers, transmission channels, and impacts of the phase‐out of carbon‐intensive industries on the financial system and on the feedback from the financial system into the rest of the economy. We also review the state of play of policy aiming to protect the financial system from transition risks and spell out research implications. This article is categorized under: Climate Economics > Economics and Climate Change

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Financing Renewable Energy: Who Is Financing What and Why it Matters

Cited by 36 publications

References 64 publications

Who Drives the Transition to a Renewable-Energy Economy? Multi-Actor Perspective on Social Innovation

Who Drives the Transition to a Renewable-Energy Economy? Multi-Actor Perspective on Social Innovation

Electricity market design for a decarbonised future

Low‐carbon transition risks for finance

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