The economics of transition pathways: A proposed taxonomy and a policy experiment

Hötte, Kerstin

doi:10.1016/j.eist.2020.05.001

Cited by 5 publications

(5 citation statements)

References 87 publications

(164 reference statements)

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“…The main reason for this principle is that market-based instruments enable firms to employ the most efficient methods to attain environmental targets. Costantini et al (2015) found that a balance between market-pull and technology-push policies creates strong incentives for the patenting of technologies rather than imbalanced policy instruments [62,63].…”

Section: Link2: Transformation or Technology Developmentmentioning

confidence: 99%

Policy Chain of Energy Transition from Economic and Innovative Perspectives: Conceptual Framework and Consistency Analysis

Mohammadi,

Mostofi,

Dienel

2023

Sustainability

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Climate change mitigation in energy systems has experienced a remarkable evolution over the past decades. In recent years, renewable energy and energy efficiency have made significant technological and deployment advancements, spurred by policy support, technology development, and cost reduction. Despite advancements in the concepts of innovation and sustainability transition, policy mix studies face challenges in policy regarding the process of energy transition. In fact, there is a need to deepen knowledge of many relevant transition policy design dimensions in order to address unresolved questions about why policymakers choose some instruments over others in the context of an existing or desired mix, how specific policy instruments operate in a mix that has a direct impact on policy performance, and how the transition policy can be evaluated in terms of achieving the desired outcome of CO2 reduction. In an attempt to conceptualize a policy design for energy transition, this research develops a conceptual framework consisting of a policy chain in energy transition from economic and innovation perspectives. This chain has five links, corresponding to policies supporting decarbonization, transformation, renewable energy deployment, energy saving, and CO2 emissions. A consistency analysis of the sub-indicators using data from ten leading European countries was performed, and the reliability of four links, excluding energy saving, was confirmed. The economic and innovation perspectives of the developed framework, which are aligned with the reliability analysis of each index of the framework, answer the question posed in this paper regarding actual features in energy transition. A complete energy transition requires economic signals and a fiscal system (Link1: supportive policies of decarbonization) that are aligned with all of the policy contributions in terms of strategic investments for technology development (Link2: transformation and technological development). Energy policy schemes, including taxation, subsidization and RD&D in technology related to climate change mitigation, increase motivations for alternative energy exploitation (Link3: RE deployment), which adds to the advance actions by individuals and firms in terms of energy saving (Link4), all of which combine to result in a change in greenhouse gas emissions (Link5: CO2 emission).

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Section: Link2: Transformation or Technology Developmentmentioning

confidence: 99%

Policy Chain of Energy Transition from Economic and Innovative Perspectives: Conceptual Framework and Consistency Analysis

Mohammadi,

Mostofi,

Dienel

2023

Sustainability

View full text Add to dashboard Cite

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“…This encompasses studies that embrace quantitative modelling in transitions research with varying degrees of integration (e.g. van Sluisveld et al, 2020;Li and Strachan, 2017;Geels et al, 2020;Hötte, 2020) as well as more conceptual roadmaps that highlight complementaries, outline exchange possibilities, and thus point the way ahead for future research (Otto et al, 2020;Trutnevyte et al, 2019;Geels et al, 2016;Victor, 2015;Hof et al, 2020;Li et al, 2015;Turnheim et al, 2015;De Cian et al, 2020;Marechal and Lazaric, 2010).…”

Section: Benefits and Strategies Of Linking Both Approachesmentioning

confidence: 99%

“…At the upper end of the integration spectrum, the merging strategy aims at an in-depth consolidation of the two approaches in a mathematical formalism, which implicitly assumes that the key dynamical properties of the underlying socio-technical systems can be cast into model equations (Hirt et al, 2020;Strachan, 2017, 2019;Mercure et al, 2016;McCollum et al, 2017;Hötte, 2020). While the merging strategy comes at the expense of simplifying complex contextual insights from the social sciences into generic quantifiable patterns, it also bears the chance to realise all three linking benefits mentioned above.…”

Section: Benefits and Strategies Of Linking Both Approachesmentioning

confidence: 99%

“…It is important to note that merging models is only one among many options of merging knowledge from different disciplines. Further possibilities to enrich models with empirical insights abound (van Sluisveld et al, 2020;Geels et al, 2020;Hötte, 2020). However, in this work I focus on the option of merging models as one possibility of merging insights.…”

Section: Benefits and Strategies Of Linking Both Approachesmentioning

confidence: 99%

“…Despite a general agreement about the complementary knowledge base of techno-economic and sociotechnical approaches to global energy transitions, the discussion on how to best leverage the available synergies has all but converged. Different approaches of operationalising socio-technical transitions range from the development of scenario narratives based on social science insights for usage in techno-economic integrated assessment models (IAMs) (van Sluisveld et al, 2020) to the development of fully new modelling frameworks such as overlapping socio-technical energy transition (STET) models (Li and Strachan, 2017) and agent-based models (ABMs) (Lamperti et al, 2018;Hötte, 2020). These two possibilities either follow in the footsteps of the 'story and simulation' approach, iteratively translating qualitative storylines into quantitative scenarios (Alcamo, 2008), or attempt to merge insights from social sciences into completely new models.…”

Section: Introductionmentioning

confidence: 99%

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Climate mitigation under S-shaped energy technology diffusion: Leveraging synergies of optimisation and simulation models

Odenweller

2022

Technological Forecasting and Social Change

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Skill transferability and the stability of transition pathways- A learning-based explanation for patterns of diffusion

Hötte

2021

J Evol Econ

Self Cite

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Technological know-how is necessary to make effectively use of new machinery and capital goods. Firms and employees accumulate technology-specific knowledge when working with specific machinery. Radical innovation differs by technology type and pre-existing knowledge may be imperfectly transferable across types. In this paper, I address the implications of cross-technology transferability of skills for firm-level technology adoption and its consequences for the direction of macroeconomic technological change. I propose a microeconomically founded model of technological learning that is based on empirical and theoretical insights of the innovation literature. In a simulation study using the macroeconomic ABM Eurace@unibi-eco and applied to the context of green technology diffusion, it is shown that a high transferability of knowledge has ambiguous effects. It accelerates the diffusion process initially, but comes of the cost of technological stability and specialization in the long run. For firms, it is easy to adopt, but also easy to switch back to the conventional technology type. It is shown how different types of policies can be used to stabilize a technological transition pathway. The findings are summarized in a general taxonomic framework to characterize technologies. It represents a bottom-up approach to the study of technology transitions.

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The economics of transition pathways: A proposed taxonomy and a policy experiment

Cited by 5 publications

References 87 publications

Policy Chain of Energy Transition from Economic and Innovative Perspectives: Conceptual Framework and Consistency Analysis

Policy Chain of Energy Transition from Economic and Innovative Perspectives: Conceptual Framework and Consistency Analysis

Climate mitigation under S-shaped energy technology diffusion: Leveraging synergies of optimisation and simulation models

Skill transferability and the stability of transition pathways- A learning-based explanation for patterns of diffusion

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