Do Policy Mix Characteristics Matter for Low-Carbon Innovation? A Survey-Based Exploration for Renewable Power Generation Technologies in Germany

Abstract

Article (Accepted Version)http://sro.sussex.ac.uk Rogge, Karoline and Schleich, Joachim (2018) Do policy mix characteristics matter for lowcarbon innovation? A survey-based exploration of renewable power generation technologies in Germany. Research Policy, 47 (9). AbstractPolicy mixes may play a crucial role in redirecting and accelerating innovation towards low-carbon solutions, thus addressing a key societal challenge. Towards this end, some argue that the characteristics of such policy mixes matter greatly, yet with little empirical evidence backing up such claims. In this paper we explore this link between policy mix characteristics and low-carbon innovation, using the research case of the transition of the German electricity system towards renewable energy. Our empirical insights are based on an innovation survey administered to German manufacturers of renewable power generation technologies which builds on the Community Innovation Survey. For our purposes we adjusted the survey to better capture companies' perceptions of policy mixes. Employing a bivariate Tobit model we find evidence that companies' perceptions regarding the consistency and credibility of a policy mix are positively associated with their innovation expenditures for renewable energies, and this positive link intensifies when considering the mutual interdependence of these policy mix characteristics. In contrast, neither the comprehensiveness of the instrument mix nor the coherence of policy processes were found to be related to innovation expenditures. Overall, these findings suggest that future research on low-carbon and eco-innovation should pay greater attention to the characteristics of policy mixes, rather than focusing on policy instruments only. Finally, our findings indicate a need to consider how policy may be measured in innovation surveys to generate better informed policy advice regarding the greening of innovation.

Exploring Perceptions of the Credibility of Policy Mixes: The Case of German Manufacturers of Renewable Power Generation Technologies

“…Early empirical studies support the claim that policy mix characteristics have an impact on green innovation (Rogge and Schleich, 2017). For example, the first quantitative study finds that the balance and comprehensiveness of the instrument mix are key determinants for patents in energy efficient technologies, but also indicates a negative threshold effect arising from too high a number of instruments included in the mix (Costantini et al, 2017).…”

“…Similarly, policy strategies with their long-term targets have been identified as key component of policy mixes for transitions (Nemet et al, 2014;. Empirical work investigating the role of policy mixes for low-carbon innovation shows that policy mix credibility matters for innovation, but that other aspects of the policy mix, such as its consistency and stability, also play a key role (Uyarra et al, 2016;Rogge and Schleich, 2017).…”

Do carbon emissions accelerate low-carbon innovation? Evidence from 285 Chinese prefecture-level cities

“…Because of differences in scale, resources, and development levels, cities may take contrasting low-carbon policies even compared with those in the same province (Price et al 2016 ). The combination of low-carbon policies and their implementation is vital for companies to determine their low-carbon innovation expenditure plans (Lo 2014 ; Rogge and Schleich 2018 ). For these reasons, studies start to focus on innovative activities from the city level (Vallance et al 2020 ; Song et al 2020 ).…”

Differences in the effects of China’s new energy vehicle industry policies on market growth from the perspective of policy mix

“…Considering the lagging effect of policy mix and other control variables on market sales, this model lags the market sales variable (Y) by one year. Based on the research of Rogge and Schleich, 7 Costantini et al, 9 and Xu and Li, 11 the independent variables consist of the comprehensiveness (POL Compre ), consistency (POL Consis ), and balance (POL Bal ) of the policy mix. Based on the research of Ma et al 28 and Tan et al, 44 2.…”

“…6 Different combinations of policy tools and their interactions will show different policy mix characteristics and will affect comprehensive effectiveness and the achievement of policy objectives. 7 At this stage, does the model of China's NEV industry policy mix effectively promote NEV market growth? What is the overall and dynamic effect of policy mix on market growth?…”