The Effect of Public Policies on Inducing Technological Change in Solar Energy

Vincenzi, Marco; Ozabaci, Deniz

doi:10.1017/age.2016.36

Cited by 10 publications

(3 citation statements)

References 31 publications

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“…Across 30 articles, Popp et al (2010) and Popp (2019) found that a 10% increase in energy prices increased energy-related patenting by 3-6%-a "patenting elasticity" of 0.3-0.6 (also see Verdolini & Galeotti, 2011). For low carbon and energy efficient technologies specifically, elasticity averaged 0.86, and exceeded 1 for solar PV (Kruse &Wetzel, 2016, Vincenzi andOzabaci (2017)), as also found for vehicles (Aghion et al (2016)). Carbon prices also enhance low carbon patenting (Calel & Dechezleprêtre, 2016).…”

Section: Evidence On Market-induced Innovationmentioning

confidence: 87%

Modeling myths: OnDICEand dynamic realism in integrated assessment models of climate change mitigation

Grubb

Wieners

Yang

2021

WIREs Climate Change

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We analyze how stylized Integrated Assessment Models (IAMs), and specifically the widely‐used Dynamic Integrated Climate‐Economy model (DICE), represent the cost of emissions abatement. Many assume temporal independence—that abatement costs in one period are not affected by prior abatement. We contrast this with three dimensions of dynamic realism in emitting systems: (i) inertia, (ii) induced innovation, and (iii) path dependence. We review key evidence from the last quarter century on each of these three components. Studies of stock lifetime, dynamics of diffusion and past transitions suggest typical transition timescales of at least 20–40 years for the bulk emitting systems. The evidence that substantial innovation is induced by both prices and market deployment is unambiguous. Finally, both data and a rapidly growing literature demonstrate substantial path dependence in general, and specifically “carbon lock‐in and lock‐out.” Some stylized models in the past decade have incorporated technology learning, and others have considered inertia, but the combination of these factors is important and not yet evident. More complex hybrid IAMs with technology‐rich energy‐system models incorporate these factors, but their complexity has limited the wider understanding and influence of their underlying insights. Few if any global models fully represent path dependence. We conclude with likely implications drawing upon the empirical and modeling evidence accumulated, including results from extending DICE with a highly stylized representation of such dynamic factors. This suggests that dynamic interdependencies could multiply several‐fold the optimal level of initial abatement expenditure. This is because early abatement then also directly facilitates subsequent emission savings. The diversity of dynamic linkages across sectors and technologies also implies more nuanced policy than a single global carbon price. Thus, the issues explored in this review can radically change the general policy conclusions drawn from models, which, like DICE, neglect dynamic realism. This article is categorized under: Climate Economics > Aggregation Techniques for Impacts and Mitigation Costs

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Section: Evidence On Market-induced Innovationmentioning

confidence: 87%

Modeling myths: OnDICEand dynamic realism in integrated assessment models of climate change mitigation

Grubb

Wieners

Yang

2021

WIREs Climate Change

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“…Such evidence has been enhanced by more recent studies reviewed in [15], who documented a (statistically significant) link between energy prices and patent filing for energy innovations. Ley et al find not only that higher energy prices increased patenting, but disproportionately enhance low-carbon patents [16], e.g., for solar PV [17] and electric vehicles [18]. Recent studies show a positive impact of carbon pricing and other environmental regulation on low-carbon innovation.…”

Section: Technology Progressmentioning

confidence: 99%

Low-Carbon R&D Can Boost EU Growth and Competitiveness

Fragkiadakis¹,

Fragkos²,

Paroussos³

2020

Energies

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Research and Innovation (R&I) are a key part of the EU strategy towards stronger growth and the creation of more and better jobs while respecting social and climate objectives. In the last decades, improvements in costs and performance of low-carbon technologies triggered by R&I expenditures and learning-by-doing effects have increased their competitiveness compared to fossil fuel options. So, in the context of ambitious climate policies as described in the EU Green Deal, increased R&I expenditures can increase productivity and boost EU economic growth and competitiveness, especially in countries with large innovation and low-carbon manufacturing base. The analysis captures the different nature of public and private R&I, with the latter having more positive economic implications and higher efficiency as it is closer to industrial activities. Public R&D commonly focuses on immature highly uncertain technologies, which are also needed to achieve the climate neutrality target of the EU. The model-based assessment shows that a policy portfolio using part of carbon revenues for public and private R&D and development of the required skills can effectively alleviate decarbonisation costs, while promoting high value-added products and exports (e.g., low-carbon technologies), creating more high-quality jobs and contributing to climate change mitigation.

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“…;Johnstone et al, (2010) ;Nicolli et Vona (2016) ainsi queVincenzi et Ozabaci (2017), obtiennent des effets positifs de ces mêmes politiques sur le solaire mais utilisent pour cela une variable plus précise comme mesure de la politique (le montant du FIT). Les résultats obtenus dépendent donc en partie de la façon dont sont définis le modèle économétrique et les variables de politiques, une plus grande précision dans la caractérisation des politiques conduisant à des résultats plus nettement favorables.De même, l'absence de précision dans la caractérisation des technologies conduit à des résultats non significatifs.…”

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L’effet des politiques climatiques sur les énergies renouvelables : une revue des études économétriques

Bourgeois¹,

Mathy²,

Menanteau³

2017

Innovations

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La limitation du réchauffement climatique nécessite un déploiement rapide et important des énergies renouvelables (ENR). Des politiques de soutien visant l'innovation et la diffusion de ces technologies ont été mises en oeuvre depuis plus de 20 ans. Il existe aujourd'hui un débat sur leur efficacité environnementale et économique et sur le bon équilibre entre soutien à l'innovation et à la diffusion. Cet article éclaire les enjeux de ce débat en présentant les résultats de la littérature économétrique qui évalue l'effet de ces politiques et en comparant ces résultats avec les principaux enseignements des études non économétriques. Les résultats montrent que les politiques d'innovation et les politiques de diffusion ont un impact positif sur les ENR et confirment en cela les études non économétriques. Ils font toutefois apparaitre des effets différenciés selon la nature des politiques (politiques prix versus politiques quantités) et la maturité des technologies.

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The Effect of Public Policies on Inducing Technological Change in Solar Energy

Cited by 10 publications

References 31 publications

Modeling myths: OnDICEand dynamic realism in integrated assessment models of climate change mitigation

Modeling myths: OnDICEand dynamic realism in integrated assessment models of climate change mitigation

Low-Carbon R&D Can Boost EU Growth and Competitiveness

L’effet des politiques climatiques sur les énergies renouvelables : une revue des études économétriques

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