The comparative institutional analysis of energy transitions

Abstract

The discussion on ‘The comparative institutional analysis of energy transitions’ gives us a state-of-the-art overview of the main theoretical and conceptual developments within the field of political economy. It invites us to broaden our knowledge on the changing realities of different geographical regions in energy transition. In this discussion forum, Finnegan discusses emerging themes in the comparative political economy literature of climate change. He identifies gaps and offers an outline for further research. Allen, Allen, Cumming and Johan take a closer look at the links between different types of capitalism and the natural environment. The authors stress the importance of adopting an institutional perspective to explain differences in environmental outcomes. Wood compares the transitions of energy usage and mixes between liberal and coordinated market economies from a historical perspective. He looks for parallels between the energy transition from coal to oil and gas to the current renewables. Nicklich and Endo answer the question ‘Do globalization and globally perceived occurrences of environmental problems lead to a convergence of energy supply?’. They compare the fields of German and Japanese wind power with a particular focus on Greenpeace after the Fukushima disaster in 2011. Finally, Lim and Tanaka focus on the question ‘When do energy transition policies enjoy broad-based acceptance?’. They conclude that the public acceptance of energy transition varies between Western and non-Western societies.

Collaboration and Internationalization of SMEs: Insights and Recommendations from a Systematic Review

“…This would suggest a closer emphasis on the interconnectedness of things might be in order (Wood et al . 2020) rather than on events unfolding in distinct spheres. This is particularly important, as much of the research on the topic focuses on immediate or short‐term outcomes; a longer view, taking account of structure, resource dynamics, and choices – and the ways in which they impact on each other – might shed further light on the challenges of sustaining international enterprise over time, as well as on the drivers of future upscaling or retreat.…”

Long-term energy transitions and international business: Concepts, theory, methods, and a research agenda

“…The world has seen two great energy transitions in the past 150 years, the first from coal to oil and gas (Yergin, 1991a ) and the second from hydrocarbons to renewables. Although, in the first transition, oil offered a new source of cheap and easily transportable energy, it necessitated major reallocations of capital and fundamentally changed the basis of competitiveness of regions and firms (Wood, 2016 ; Wood et al, 2020 ; Yergin, 1991a ). Those changes were accompanied by shifts in energy technologies and in the provision of energy services (Yergin, 1991a ).…”

“…We are now in the throes of a second long-term energy transition; the relative proportion of oil and gas in the global energy mix has diminished, even as overall usage has increased (Verbong & Loorbach, 2012 ; Armaroli & Balzani, 2016 ; Wood et al, 2020 ). Solar and wind energy are beginning to compete with oil and gas in cost and price predictability, even without subsidies (Armaroli & Balzani, 2016 ).…”

“…Alternative energy sources do not suffer from hydrocarbon exhaustion, and, although they have high set-up costs, they are also associated with more stable revenue flows and low running costs (Khare, Nema, & Baredar, 2016 ; Wood, 2016 ; Wood et al, 2020 ). As such, alternate energy investments are more conducive to patient capital and provide opportunities for long-term investors (Wood et al, 2020 ). Highly mobile capital shifts towards new opportunities and space during any long economic crisis; however, the evidence shows that to date investments have been disproportionately focused on hydrocarbons (cf, Bunn, Chevallier, Le Pen, & Sevi, 2017 ).…”

“…Since the 1970s, oil and gas have been associated with price volatility, and the declining cost of alternative energy sources has made these other options increasingly attractive (Gil-Alana, Gupta, Olubusoye, & Yaya, 2016 ; Ji & Guo, 2015 ). This period has been characterized by macro-economic volatility and political crises within some of the most advanced economies, conditions similar to the long-term energy transition of the early twentieth century (Wood, 2016 ; Wood, Finnegan, Allen, Allen, Cumming, Johan, Nicklich, Endo, Lim, & Tanaka, 2020 ; Newell, 2019 ). This raises questions on how these issues connect and what they could mean for international business and international management (IB/IM) studies.…”