The role of markets and policies in delivering innovation for climate change mitigation

Abstract

This paper identifies market incentives and international and domestic policies that could technologically alter energy systems to achieve greenhouse gas stabilization targets while also meeting other societal goals. I consider the conceptual basis and empirical evidence on the effectiveness and efficiency of climate technology policies. The paper reviews the literature on trends and prospects for innovation in climate change mitigation and examines the evidence on induced innovation and the implications for the choice of technology policy. I then consider the impact of technological advances on the environment, the role of direct government support for R&D, and the complementarities between policies internalizing environmental externalities and those aimed at environmental innovations.

Challenges for R&D and innovation in energy

“…These characteristics justify public-private collaboration. (Newell, 2010;Henderson and Newell, 2011).…”

Regional Energy Efficiency Programs in Russia: The Factors of Success

“…The reaction of countries with underdeveloped NIS is to increase public funding for research and development in respective fields of knowledge, but the focus is on the development of already known technology in the country (Bergek et al 2008, Jacobsson, Bergek 2004, Lipp 2007. For example, if a country owns a nuclear power technology, but does not develop the technologies of solar or wind energy, the funding most likely will be spent on research and development in the field of nuclear energy at the expense of all other areas (Unruh 2000, Newell 2010). This hypothesis has not been studied in either Russian or international literature on the regional level so far.…”

“…The main hypothesis of the study is that the reduction of cost barriers for energy efficiency induces variegated rates of energy technology innovation in different regions mostly depending on the effectiveness of the innovation system in the relevant regions. This idea was initially formulated to explain international variation in the form of reaction to oil shocks and energy price increases (Newell 2010, Popp 2002) and then empirically tested for national innovation systems of 23 industrialized countries that joined the OECD before the year 1989 (Cheon, Johannes 2012). In our study, we test this theoretical argument on the regional level using the Russian Federal State Statistic Agency database.…”

Explaining the Slow Pace of Energy Technological Innovation: Why Market Conditions Matter?

“…Note that, given the urgency and novelty of energy technological innovation issues, it is not surprisingly that a large body of recent studies have explored the policy issues related to energy innovation (e.g., Noberg-Bohm, 2000;Grubb, 2004;Gallagher et al, 2006;Sagar and van der Zwaan, 2006;Nemet and Kammen, 2007;Newell 2008;Anadon and Holdren 2009;Weiss and Bonvillian 2009;Narayanamurti et al, 2009;Henderson and Newell, 2010;Newell, 2010Newell, , 2011Anadon, 2010;Grübler et al 2012). In general, these works have the virtue of providing helpful policy prescriptions and are characterized as an important starting point for further studies.…”