IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v114y2018icp465-481.html
   My bibliography  Save this article

The role of regulatory learning in energy transition: The case of solar PV in Brazil

Author

Listed:
  • Vazquez, Miguel
  • Hallack, Michelle

Abstract

An important problem that has attracted significant amount of attention within the context of energy transitions is the carbon lock-in: a situation in which energy systems are locked-in to high carbon technologies through a path-dependent process. Several measures to avoid the carbon lock-in involve technology-specific measures, which in turn implies that those measures may result in an energy system locked-in to certain low carbon technologies. We consider that the Brazilian system needs policies to escape the carbon lock in, which are based on providing incentives to low carbon technologies. We develop an analytical framework to analyze the role of regulatory institutions in the possible lock-in to utility-scale photovoltaic, in the sense that they create barriers to the adoption of distributed-generation photovoltaic. We show that the definition of a process to adapt the institutional framework in a context of stress in the innovation system is crucial for the adoption of new technologies. Applying our framework to the Brazilian power sector, we observe that only when regulators consider the possibility that the system is locked-in to centralized production technologies (and not when they just consider the carbon lock-in) they manage to eliminate barriers to distributed generation based on solar PV.

Suggested Citation

  • Vazquez, Miguel & Hallack, Michelle, 2018. "The role of regulatory learning in energy transition: The case of solar PV in Brazil," Energy Policy, Elsevier, vol. 114(C), pages 465-481.
    • Handle: RePEc:eee:enepol:v:114:y:2018:i:c:p:465-481
    DOI: 10.1016/j.enpol.2017.11.066
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517308121
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2017.11.066?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Crawford, Sue E. S. & Ostrom, Elinor, 1995. "A Grammar of Institutions," American Political Science Review, Cambridge University Press, vol. 89(3), pages 582-600, September.
    2. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    3. W. Brian Arthur, 1994. "Inductive Reasoning, Bounded Rationality and the Bar Problem," Working Papers 94-03-014, Santa Fe Institute.
    4. Ignacio J. Perez-Arriaga and Pedro Linares, 2008. "Markets vs. Regulation: A Role for Indicative Energy Planning," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 149-164.
    5. Iychettira, Kaveri K. & Hakvoort, Rudi A. & Linares, Pedro & de Jeu, Rob, 2017. "Towards a comprehensive policy for electricity from renewable energy: Designing for social welfare," Applied Energy, Elsevier, vol. 187(C), pages 228-242.
    6. Jacobsson, Staffan & Lauber, Volkmar, 2006. "The politics and policy of energy system transformation--explaining the German diffusion of renewable energy technology," Energy Policy, Elsevier, vol. 34(3), pages 256-276, February.
    7. Severin Borenstein & James Bushnell, 1999. "An Empirical Analysis of the Potential for Market Power in California’s Electricity Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 47(3), pages 285-323, September.
    8. David Heath & Robert Jarrow & Andrew Morton, 2008. "Bond Pricing And The Term Structure Of Interest Rates: A New Methodology For Contingent Claims Valuation," World Scientific Book Chapters, in: Financial Derivatives Pricing Selected Works of Robert Jarrow, chapter 13, pages 277-305, World Scientific Publishing Co. Pte. Ltd..
    9. Arthur, W Brian, 1994. "Inductive Reasoning and Bounded Rationality," American Economic Review, American Economic Association, vol. 84(2), pages 406-411, May.
    10. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2005. "A tale of two market failures: Technology and environmental policy," Ecological Economics, Elsevier, vol. 54(2-3), pages 164-174, August.
    11. Unruh, Gregory C., 2000. "Understanding carbon lock-in," Energy Policy, Elsevier, vol. 28(12), pages 817-830, October.
    12. Jay W. Forrester, 1968. "Industrial Dynamics--After the First Decade," Management Science, INFORMS, vol. 14(7), pages 398-415, March.
    13. Cepeda, Mauricio & Finon, Dominique, 2013. "How to correct for long-term externalities of large-scale wind power development by a capacity mechanism?," Energy Policy, Elsevier, vol. 61(C), pages 671-685.
    14. Bauwens, Thomas, 2016. "Explaining the diversity of motivations behind community renewable energy," Energy Policy, Elsevier, vol. 93(C), pages 278-290.
    15. del Río, Pablo & Linares, Pedro, 2014. "Back to the future? Rethinking auctions for renewable electricity support," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 42-56.
    16. D. Finon, 2013. "How to Correct Long-term Externalities of Large-scale Wind Power Development by a Capaciy Mechanism ?," Post-Print hal-00834997, HAL.
    17. Hall, Stephen & Roelich, Katy, 2016. "Business model innovation in electricity supply markets: The role of complex value in the United Kingdom," Energy Policy, Elsevier, vol. 92(C), pages 286-298.
    18. Vazquez, Carlos & Hallack, Michelle & Vazquez, Miguel, 2017. "Price computation in electricity auctions with complex rules: An analysis of investment signals," Energy Policy, Elsevier, vol. 105(C), pages 550-561.
    19. Witt, Ulrich, 1996. "Innovations, Externalities and the Problem of Economic Progress," Public Choice, Springer, vol. 89(1-2), pages 113-130, October.
    20. Gawel, Erik & Lehmann, Paul & Purkus, Alexandra & Söderholm, Patrik & Witte, Katherina, 2017. "Rationales for technology-specific RES support and their relevance for German policy," Energy Policy, Elsevier, vol. 102(C), pages 16-26.
    21. Cepeda, Mauricio & Finon, Dominique, 2011. "Generation capacity adequacy in interdependent electricity markets," Energy Policy, Elsevier, vol. 39(6), pages 3128-3143, June.
    22. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    23. Haas, Reinhard & Panzer, Christian & Resch, Gustav & Ragwitz, Mario & Reece, Gemma & Held, Anne, 2011. "A historical review of promotion strategies for electricity from renewable energy sources in EU countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1003-1034, February.
    24. repec:dau:papers:123456789/13149 is not listed on IDEAS
    25. Nill, Jan & Kemp, Ren, 2009. "Evolutionary approaches for sustainable innovation policies: From niche to paradigm?," Research Policy, Elsevier, vol. 38(4), pages 668-680, May.
    26. Les Clewlow & Chris Strickland, 1999. "A Multi-Factor Model for Energy Derivatives," Research Paper Series 28, Quantitative Finance Research Centre, University of Technology, Sydney.
    27. Foxon, Timothy J., 2011. "A coevolutionary framework for analysing a transition to a sustainable low carbon economy," Ecological Economics, Elsevier, vol. 70(12), pages 2258-2267.
    28. Iychettira, Kaveri K. & Hakvoort, Rudi A. & Linares, Pedro, 2017. "Towards a comprehensive policy for electricity from renewable energy: An approach for policy design," Energy Policy, Elsevier, vol. 106(C), pages 169-182.
    29. Carlota Perez, 2009. "Technological revolutions and techno-economic paradigms," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 20, TUT Ragnar Nurkse Department of Innovation and Governance.
    30. Giordano, Vincenzo & Fulli, Gianluca, 2012. "A business case for Smart Grid technologies: A systemic perspective," Energy Policy, Elsevier, vol. 40(C), pages 252-259.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Filippo Antoniolli, Andrigo & Naspolini, Helena Flávia & de Abreu, João Frederico & Rüther, Ricardo, 2022. "The role and benefits of residential rooftop photovoltaic prosumers in Brazil," Renewable Energy, Elsevier, vol. 187(C), pages 204-222.
    2. Bhatt, Brijesh & Singh, Anoop, 2021. "Power sector reforms and technology adoption in the Indian electricity distribution sector," Energy, Elsevier, vol. 215(PA).
    3. Costa, Vinicius B.F. & Capaz, Rafael S. & Silva, Patrícia F. & Doyle, Gabriel & Aquila, Giancarlo & Coelho, Éden O. & de Lorenci, Eliane & Pereira, Lígia C. & Maciel, Letícia B. & Balestrassi, Pedro P, 2022. "Socioeconomic and environmental consequences of a new law for regulating distributed generation in Brazil: A holistic assessment," Energy Policy, Elsevier, vol. 169(C).
    4. Elia, A. & Kamidelivand, M. & Rogan, F. & Ó Gallachóir, B., 2021. "Impacts of innovation on renewable energy technology cost reductions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    5. Felipe Barroco Fontes Cunha & Maria Cândida Arrais de Miranda Mousinho & Luciana Carvalho & Fábio Fernandes & Celso Castro & Marcelo Santana Silva & Ednildo Andrade Torres, 2021. "Renewable energy planning policy for the reduction of poverty in Brazil: lessons from Juazeiro," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(7), pages 9792-9810, July.
    6. Shidore, Sarang & Busby, Joshua W., 2019. "What explains India's embrace of solar? State-led energy transition in a developmental polity," Energy Policy, Elsevier, vol. 129(C), pages 1179-1189.
    7. Victoria Kihlström & Jörgen Elbe, 2021. "Constructing Markets for Solar Energy—A Review of Literature about Market Barriers and Government Responses," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    8. Vargas Gil, Gloria Milena & Bittencourt Aguiar Cunha, Rafael & Giuseppe Di Santo, Silvio & Machado Monaro, Renato & Fragoso Costa, Fabiano & Sguarezi Filho, Alfeu J., 2020. "Photovoltaic energy in South America: Current state and grid regulation for large-scale and distributed photovoltaic systems," Renewable Energy, Elsevier, vol. 162(C), pages 1307-1320.
    9. Costa, Evaldo & Rodrigues Teixeira, Ana Carolina & Silva Costa, Suellen Caroline & Consoni, Flavia L., 2022. "Influence of public policies on the diffusion of wind and solar PV sources in Brazil and the possible effects of COVID-19," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    10. Bernardo Alves Furtado & Gustavo Onofre Andre~ao, 2022. "Machine Learning Simulates Agent-Based Model Towards Policy," Papers 2203.02576, arXiv.org, revised Nov 2022.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schmidt, Tobias S. & Battke, Benedikt & Grosspietsch, David & Hoffmann, Volker H., 2016. "Do deployment policies pick technologies by (not) picking applications?—A simulation of investment decisions in technologies with multiple applications," Research Policy, Elsevier, vol. 45(10), pages 1965-1983.
    2. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    3. Khan, Agha Salman M. & Verzijlbergh, Remco A. & Sakinci, Ozgur Can & De Vries, Laurens J., 2018. "How do demand response and electrical energy storage affect (the need for) a capacity market?," Applied Energy, Elsevier, vol. 214(C), pages 39-62.
    4. Steffen S. Bettin, 2020. "Electricity infrastructure and innovation in the next phase of energy transition—amendments to the technology innovation system framework," Review of Evolutionary Political Economy, Springer, vol. 1(3), pages 371-395, November.
    5. Hoppmann, Joern & Peters, Michael & Schneider, Malte & Hoffmann, Volker H., 2013. "The two faces of market support—How deployment policies affect technological exploration and exploitation in the solar photovoltaic industry," Research Policy, Elsevier, vol. 42(4), pages 989-1003.
    6. Ciarli, Tommaso & Ràfols, Ismael, 2019. "The relation between research priorities and societal demands: The case of rice," Research Policy, Elsevier, vol. 48(4), pages 949-967.
    7. Nill, Jan & Kemp, Ren, 2009. "Evolutionary approaches for sustainable innovation policies: From niche to paradigm?," Research Policy, Elsevier, vol. 38(4), pages 668-680, May.
    8. Melliger, Marc, 2023. "Quantifying technology skewness in European multi-technology auctions and the effect of design elements and other driving factors," Energy Policy, Elsevier, vol. 175(C).
    9. Negro, Simona O. & Alkemade, Floortje & Hekkert, Marko P., 2012. "Why does renewable energy diffuse so slowly? A review of innovation system problems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3836-3846.
    10. Paul Lehmann & Patrik Söderholm, 2018. "Can Technology-Specific Deployment Policies Be Cost-Effective? The Case of Renewable Energy Support Schemes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 475-505, October.
    11. Gerardo Marletto, 2012. "Which Conceptual Foundations For Environmental Policies? An Institutional And Evolutionary Framework Of Economic Change," Working Papers 0112, CREI Università degli Studi Roma Tre, revised 2012.
    12. Grashof, Katherina, 2019. "Are auctions likely to deter community wind projects? And would this be problematic?," Energy Policy, Elsevier, vol. 125(C), pages 20-32.
    13. Lehmann, Paul & Gawel, Erik, 2013. "Why should support schemes for renewable electricity complement the EU emissions trading scheme?," Energy Policy, Elsevier, vol. 52(C), pages 597-607.
    14. Safarzyńska, Karolina & Frenken, Koen & van den Bergh, Jeroen C.J.M., 2012. "Evolutionary theorizing and modeling of sustainability transitions," Research Policy, Elsevier, vol. 41(6), pages 1011-1024.
    15. Paul Lehmann & Jos Sijm & Erik Gawel & Sebastian Strunz & Unnada Chewpreecha & Jean-Francois Mercure & Hector Pollitt, 2019. "Addressing multiple externalities from electricity generation: a case for EU renewable energy policy beyond 2020?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 255-283, April.
    16. Marletto, Gerardo, 2012. "Which conceptual foundations for environmental policies? An institutional and evolutionary framework of economic change," MPRA Paper 36441, University Library of Munich, Germany.
    17. Markard, Jochen & Raven, Rob & Truffer, Bernhard, 2012. "Sustainability transitions: An emerging field of research and its prospects," Research Policy, Elsevier, vol. 41(6), pages 955-967.
    18. Cantner, Uwe & Graf, Holger & Herrmann, Johannes & Kalthaus, Martin, 2016. "Inventor networks in renewable energies: The influence of the policy mix in Germany," Research Policy, Elsevier, vol. 45(6), pages 1165-1184.
    19. Paul Lehmann & Felix Creutzig & Melf-Hinrich Ehlers & Nele Friedrichsen & Clemens Heuson & Lion Hirth & Robert Pietzcker, 2012. "Carbon Lock-Out: Advancing Renewable Energy Policy in Europe," Energies, MDPI, vol. 5(2), pages 1-32, February.
    20. Maria Minniti & William Bygrave, 2001. "A Dynamic Model of Entrepreneurial Learning," Entrepreneurship Theory and Practice, , vol. 25(3), pages 5-16, April.

    More about this item

    Keywords

    L43; L94; O31; O43; Energy transitions; Institutional evolution; Path-dependence; Evaluative criteria;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:114:y:2018:i:c:p:465-481. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.