The Impact of Energy Prices on Green Innovation

Ley, Marius Christian; Stucki, Tobias; Woerter, Martin

doi:10.5547/01956574.37.1.mley

Cited by 122 publications

(43 citation statements)

References 52 publications

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“…Empirical evidence on the impact of energy price changes on the adoption of energy efficient technology and innovation supports the finding of larger long-run elasticities (e.g. Ley et al 2016;Popp 2002).…”

Section: Market-based Instrumentsmentioning

confidence: 71%

Interaction effects of energy efficiency policies: a review

2018

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Section: Market-based Instrumentsmentioning

confidence: 71%

Interaction effects of energy efficiency policies: a review

2018

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“…Although the Chinese government has attached great importance to the development and diffusion of agriculture green technology in recent years, it has not diffused as well as expected. As a result of externalities and the path dependence effect [ 49 ], the innovation and diffusion of agriculture green technology require policy support from the government to reach an optimal level. Effective government environmental policy is a necessary intervention that will exert pressure on enterprises to reduce emissions [ 50 ], form shadow prices of emissions and help induce the innovation and diffusion of green technology by many stakeholders.…”

Section: Discussionmentioning

confidence: 99%

Overcoming Barriers to Agriculture Green Technology Diffusion through Stakeholders in China: A Social Network Analysis

Wang

Liu

et al. 2020

IJERPH

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It is crucial to actively encourage the development of agriculture green technology, which has been regarded as one of the most effective solutions to the environmental degradation caused by agricultural activities. However, agriculture green technology diffusion is indeed a challenging task and still faces numerous barriers. The stakeholders who can potentially deal with these barriers, however, have been overlooked by previous studies. To address these issues, social network analysis was performed to identify critical stakeholders and barriers. Their interactions in agriculture green technology diffusion were analyzed based on the literature, a questionnaire survey and expert judgments. A two-mode network and two one-mode networks were used to analyze the relationships among the identified 12 barriers and 14 stakeholders who can influence these 12 barriers identified. The results show that agricultural research institutes, universities, agribusiness, agencies of township promotion, the government and farmers’ relatives are key stakeholders and that the limited market demand for green technology and the high cost of its diffusion are two main barriers. However, poor green technology operability and farmer families in distress are factors that are not as important as previously perceived. Finally, some recommendations and suggestions are provided to promote agriculture green technology diffusion in China.

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“…a 10% rise in energy prices induced a 3-6% increase in energy-related patents ; Verdolini & Galeotti (2011)). In a large study of industrial energy technologies, Ley et al, (2016) find not only that higher energy prices increased patenting (elasticity 0.034), but disproportionately enhance green energy patents (0.048). The impact increases with the lag, reflecting the multi-year timescales of induced innovation.…”

Section: Evidence On Market-induced Innovation and Induced Cost Reducmentioning

confidence: 99%

Modeling Myths: On the Need for Dynamic Realism in DICE and other Equilibrium Models of Global Climate Mitigation

Grubb

Wieners

2020

INET Working Paper Series

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We analyze and critique how optimizing Integrated Assessment Models, and specifically the widely-used DICE model, represent abatement costs. Many such models assume temporal independence -abatement costs in one period are not affected by prior abatement. We contrast this with three dimensions of dynamic realism in emitting systems: inertia, induced innovation, and path dependence.We extend the DICE model with a stylized representation of such dynamic factors. By adding a transitional cost component, we characterize the resulting system in terms of its capacity to adapt in path-dependent ways, and the transitional costs of accelerating abatement. We formalize a resulting metric of the pliability of the system, and the characteristic timescales of adjustment.With the resulting DICE-PACE model, we show that in a system with high pliability, the optimal strategy involves much higher initial investment in abatement, sustained at roughly constant levels for some decades, which generates an approximately linear abatement path and emissions declining steadily to zero. This contrasts sharply with the traditional formulation. Characteristic transition timescales of 20-40 years result in an optimum path † Professor of Energy and Climate Change, University College London. m.grubb@ucl.ac.uk ‡ Postdoctoral researcher at which stabilizes global temperatures around a degree below the traditional DICE behavior; with otherwise modest assumptions, a pliable system can generate optimal scenarios within the goals of the Paris Agreement, with far lower long run combined costs of abatement and climate damages.We conclude that representing dynamic realism in such models is as important as -and far more empirically tractable than -continued debate about the monetization of climate damages and 'social cost of carbon'.https://doi.org/10.36687/inetwp106 JEL Codes: Q5, H23, Q54, Q55The aim of the DICE model, and many others following its general philosophy, is to calculate a longterm balance of costs and benefits. Figure 1 shows the results obtained from the most recent version of DICE (2016). With Nordhaus' standard default published assumptions, it produces an emissions path which (after a drop to a present 'optimal level') has modest initial emissions abatement, strengthening over time due to rising climate damages and assumed falling cost of emission abatement. Abatement tends to be deferred, global emissions in 2050 rise back to about present levels before declining at an accelerating rate towards zero early in the next century. The underlying assumptions mean that 'climate damages' -represented as impact on global GDP -remain below 4% of GDP to the end of the century (then doubling by about 2150). Global GDP is assumed to increase seven-fold over the century and climate in the standard DICE is assumed to be a modest issue, with both the global damages and abatement costs having negligible impact on the assumed continued growth in global GDP.

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The Impact of Energy Prices on Green Innovation

Cited by 122 publications

References 52 publications

Interaction effects of energy efficiency policies: a review

Interaction effects of energy efficiency policies: a review

Overcoming Barriers to Agriculture Green Technology Diffusion through Stakeholders in China: A Social Network Analysis

Modeling Myths: On the Need for Dynamic Realism in DICE and other Equilibrium Models of Global Climate Mitigation

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