The two faces of market support—How deployment policies affect technological exploration and exploitation in the solar photovoltaic industry

Hoppmann, Joern; Peters, Michael; Schneider, Malte; Hoffmann, Volker H.

doi:10.1016/j.respol.2013.01.002

Cited by 210 publications

(165 citation statements)

References 61 publications

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“…More critically, although some authors have explicitly recognized complementarities between exogenous push and pull mechanisms, they have typically neglected the role of endogenous mechanisms. The few papers have started investigating the contribution of the endogenous drivers of RE diffusion and the impact of policy variability have mostly adopted a case-based approach (Hoppmann et al, 2013;. By the same token, scholars have not simultaneously examined the effect of these different support mechanisms on both innovation creation and diffusion.…”

Section: Innovation Support Mechanisms For Environmental Technologiesmentioning

confidence: 99%

“…Numerous empirical studies have shown that RE support policies have been effective and efficient 10 in promoting renewable generation (Meyer, 2003;Jäger-Waldau, 2007;Fouquet and Johansson, 2008;IEA, 2008;REN21, 2009;Marques and Fuinhas, 2012). In addition to their contribution to increasing the diffusion rate of RE, market-pull policies have also been a catalyst for innovation in RE technologies (Hoppmann et al, 2013). Although empirical studies in support of this hypothesis is scarce for RE, it has been argued that both price-based measures (e.g.…”

Section: H1b: In the Re Sector Exogenous Technology-push Policies Hamentioning

confidence: 99%

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Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry

2014

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This paper aims to contribute to the longstanding technology-push vs. demand-pull debate and to the literature on renewable energy policy assessment. We argue that in addition to the traditional push-pull dichotomy, the drivers of technological change must be differentiated by whether they are exogenous or endogenous to the economic system and must be assessed with respect to their contribution to both the creation and the diffusion of innovation. We apply this perspective to study innovation in the renewable energy (RE) industry in 15 European Union countries from 1990 to 2012. Using different panel data estimators, we find that public R&D investments, policies supporting RE and per capita income all have a positive effect on either innovation creation or diffusion, whereas the variability of policy support has a negative impact on diffusion. However, impacts are heterogeneous and differ depending on the innovation dimension considered. Most importantly, we find that economic growth is a stronger driver of RE diffusion than technology-push or exogenous demand-pull mechanisms, whereas it is relatively ineffective at stimulating innovation creation. The effect of economic growth on RE diffusion exhibits a nonlinear, U-shaped pattern that resonates with the Environmental Kuznets Curve hypothesis. RE penetration remains negligible at low levels of growth whereas it increases sharply only after income per capita has reached a given threshold. This effect has both a direct cause (with increased affluence demand for environmental quality rises) and an indirect cause (with increased affluence expensive RE policies become more affordable and get implemented more extensively). Our findings have implications for policy making. They suggest that for RE diffusion to increase, innovation policies should be carefully balanced. Government action should be directed not only at shielding renewables from competition with fossil fuel technologies, but also at stimulating aggregated demand and economic growth.

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Section: Innovation Support Mechanisms For Environmental Technologiesmentioning

confidence: 99%

Section: H1b: In the Re Sector Exogenous Technology-push Policies Hamentioning

confidence: 99%

Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry

2014

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“…This evolution has been demonstrated for clean energy technologies by analysing s-curve trajectories and identifying missed opportunities for increased investment in wind and geothermal power R&D 12 . Previous frameworks investigated the interaction of technology-push and demand-pull policies to guide public programmes that support clean energy through solar and wind deployment (learning by doing) [13][14][15] . The two-factor approach, established previously for wind turbines and solar photovoltaics 6,16 , demonstrates a theoretical framework to apply to clean energy technologies to develop price trajectories and build technological roadmaps for dramatic energy transitions.…”

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confidence: 99%

Energy storage deployment and innovation for the clean energy transition

2017

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The clean energy transition requires a co-evolution of innovation, investment, and deployment strategies for emerging energy storage technologies. A deeply decarbonized energy system research platform needs materials science advances in battery technology to overcome the intermittency challenges of wind and solar electricity. Simultaneously, policies designed to build market growth and innovation in battery storage may complement cost reductions across a suite of clean energy technologies. Further integration of R&D and deployment of new storage technologies paves a clear route toward cost-e ective low-carbon electricity. Here we analyse deployment and innovation using a two-factor model that integrates the value of investment in materials innovation and technology deployment over time from an empirical dataset covering battery storage technology. Complementary advances in battery storage are of utmost importance to decarbonization alongside improvements in renewable electricity sources. We find and chart a viable path to dispatchable US$1 W −1 solar with US$100 kWh −1 battery storage that enables combinations of solar, wind, and storage to compete directly with fossil-based electricity options.

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“…Second, research on clean energy diffusion and investment highlighted demand-pull policies mostly targeting the later stages of the innovation cycle [36,59,60]. Fiscal and financial incentives such as grants and subsidies [37,39,61] prove less effective than feed-in tariffs [62][63][64][65][66] that also target smaller distributed capacity investments [67].…”

Section: Innovation Policymentioning

confidence: 99%

A diverse and resilient financial system for investments in the energy transition

Polzin

Sanders

Taübe

2017

Current Opinion in Environmental Sustainability

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Diversity makes the financial system more resilient. In addition, there is a diverse investment demand to make the transition to a more sustainable energy system. We need, among others, investment in energy transition, circular resource use, better water management and reducing air pollution. The two are linked. Making the financial system more diverse implies more equity, less debt, more non-bank intermediation and more specialized niche banks giving more relation based credit. This will arguably also increase the flow of funds and resources to innovative, small scale, experimental firms that will drive the sustainability transition. Higher diversity and resilience in financial markets is thus complementary and perhaps even instrumental to engineer the transition to clean energy in the real economy.

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The two faces of market support—How deployment policies affect technological exploration and exploitation in the solar photovoltaic industry

Cited by 210 publications

References 61 publications

Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry

Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry

Energy storage deployment and innovation for the clean energy transition

A diverse and resilient financial system for investments in the energy transition

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