IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v121y2018icp404-414.html
   My bibliography  Save this article

Energy transition in Germany and regional spill-overs: The diffusion of renewable energy in firms

Author

Listed:
  • Horbach, Jens
  • Rammer, Christian

Abstract

The success of transitioning energy consumption towards renewables highly depends on the willingness and ability of firms to adopt energy technologies that use renewable sources. Existing studies focus on the role of regulation and energy markets to explaining the diffusion of green energy. This paper looks at the specific role of the firms' regional environment in this process. We use a unique database combining the Community Innovation Survey 2014 for Germany and district-level data on renewable energy plants, the attitudes of a region's population towards 'green issues' and other control variables. We find that geographical proximity to electricity production based on renewable energy sources and the orientation of a region towards 'green issues' are both correlated to such innovations. Therefore, not only "hard" regulation measures such as the renewable energy law are relevant for renewable energy innovations. Our results show that subsidies for eco-innovation, high energy costs and regional knowledge spill-overs are linked to a rapid adoption of renewable energy by firms.

Suggested Citation

  • Horbach, Jens & Rammer, Christian, 2018. "Energy transition in Germany and regional spill-overs: The diffusion of renewable energy in firms," Energy Policy, Elsevier, vol. 121(C), pages 404-414.
    • Handle: RePEc:eee:enepol:v:121:y:2018:i:c:p:404-414
    DOI: 10.1016/j.enpol.2018.06.042
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421518304300
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2018.06.042?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. Lionel Nesta & Francesco Vona & Francesco Nicolli, 2012. "Environmental Policies, Product Market Regulation and Innovation in Renewable Energy," Working Papers 2012.90, Fondazione Eni Enrico Mattei.
    2. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M. & Vance, Colin, 2010. "Economic impacts from the promotion of renewable energy technologies: The German experience," Energy Policy, Elsevier, vol. 38(8), pages 4048-4056, August.
    3. Nesta, Lionel & Vona, Francesco & Nicolli, Francesco, 2014. "Environmental policies, competition and innovation in renewable energy," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 396-411.
    4. Stucki, Tobias & Woerter, Martin & Arvanitis, Spyros & Peneder, Michael & Rammer, Christian, 2018. "How different policy instruments affect green product innovation: A differentiated perspective," Energy Policy, Elsevier, vol. 114(C), pages 245-261.
    5. Nicolò Barbieri & Claudia Ghisetti & Marianna Gilli & Giovanni Marin & Francesco Nicolli, 2016. "A Survey Of The Literature On Environmental Innovation Based On Main Path Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 596-623, July.
    6. Beise, Marian & Rennings, Klaus, 2005. "Lead markets and regulation: a framework for analyzing the international diffusion of environmental innovations," Ecological Economics, Elsevier, vol. 52(1), pages 5-17, January.
    7. Bossink, Bart A.G., 2017. "Demonstrating sustainable energy: A review based model of sustainable energy demonstration projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 1349-1362.
    8. Teodora Diana Corsatea, 2016. "Localised knowledge, local policies and regional innovation activity for renewable energy technologies: Evidence from Italy," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 443-466, August.
    9. Francesco Vona & Francesco Nicolli & Lionel Nesta, 2012. "Determinants of renewable energy innovation: environmental policies vs. market regulation," Sciences Po publications 2012-05, Sciences Po.
    10. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    11. Rosa Dangelico & Devashish Pujari, 2010. "Mainstreaming Green Product Innovation: Why and How Companies Integrate Environmental Sustainability," Journal of Business Ethics, Springer, vol. 95(3), pages 471-486, September.
    12. Popp, David & Newell, Richard G. & Jaffe, Adam B., 2010. "Energy, the Environment, and Technological Change," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 873-937, Elsevier.
    13. Joshua Linn, 2008. "Energy Prices and the Adoption of Energy-Saving Technology," Economic Journal, Royal Economic Society, vol. 118(533), pages 1986-2012, November.
    14. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
    15. Marius Ley, Tobias Stucki, and Martin Woerter, 2016. "The Impact of Energy Prices on Green Innovation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    16. Demirel, Pelin & Kesidou, Effie, 2011. "Stimulating different types of eco-innovation in the UK: Government policies and firm motivations," Ecological Economics, Elsevier, vol. 70(8), pages 1546-1557, June.
    17. Jens Horbach & Jojo Jacob, 2018. "The relevance of personal characteristics and gender diversity for (eco‐)innovation activities at the firm‐level: Results from a linked employer–employee database in Germany," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 924-934, November.
    18. Rammer, Christian & Gottschalk, Sandra & Peneder, Michael & Wörter, Martin & Stucki, Tobias & Arvanitis, Spyros, 2017. "Does energy policy hurt international competitiveness of firms? A comparative study for Germany, Switzerland and Austria," Energy Policy, Elsevier, vol. 109(C), pages 154-180.
    19. Conti, C. & Mancusi, M.L. & Sanna-Randaccio, F. & Sestini, R. & Verdolini, E., 2018. "Transition towards a green economy in Europe: Innovation and knowledge integration in the renewable energy sector," Research Policy, Elsevier, vol. 47(10), pages 1996-2009.
    20. Fred Gault (ed.), 2013. "Handbook of Innovation Indicators and Measurement," Books, Edward Elgar Publishing, number 14427.
    21. Neij, Lena, 1997. "Use of experience curves to analyse the prospects for diffusion and adoption of renewable energy technology," Energy Policy, Elsevier, vol. 25(13), pages 1099-1107, November.
    22. 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.
    23. Jens Horbach, 2014. "Do eco-innovations need specific regional characteristics? An econometric analysis for Germany," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 34(1), pages 23-38, February.
    24. repec:hal:wpspec:info:hdl:2441/eu4vqp9ompqllr09j0h0ji242 is not listed on IDEAS
    25. Pfeiffer, Birte & Mulder, Peter, 2013. "Explaining the diffusion of renewable energy technology in developing countries," Energy Economics, Elsevier, vol. 40(C), pages 285-296.
    26. Blesl, Markus & Das, Anjana & Fahl, Ulrich & Remme, Uwe, 2007. "Role of energy efficiency standards in reducing CO2 emissions in Germany: An assessment with TIMES," Energy Policy, Elsevier, vol. 35(2), pages 772-785, February.
    27. repec:hal:spmain:info:hdl:2441/f6h8764enu2lskk9p4oq2cqb0 is not listed on IDEAS
    28. Davide Antonioli & Simone Borghesi & Massimiliano Mazzanti, 2016. "Are regional systems greening the economy? Local spillovers, green innovations and firms’ economic performances," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(7), pages 692-713, October.
    29. Felix Groba & Barbara Breitschopf, 2013. "Impact of Renewable Energy Policy and Use on Innovation: A Literature Review," Discussion Papers of DIW Berlin 1318, DIW Berlin, German Institute for Economic Research.
    30. Persson, Tobias A. & Colpier, Ulrika Claeson & Azar, Christian, 2007. "Adoption of carbon dioxide efficient technologies and practices: An analysis of sector-specific convergence trends among 12 nations," Energy Policy, Elsevier, vol. 35(5), pages 2869-2878, May.
    31. Noailly, Joëlle & Smeets, Roger, 2016. "Financing energy innovation: The role of financing constraints for directed technical change from fossil-fuel to renewable innovation," EIB Working Papers 2016/06, European Investment Bank (EIB).
    32. Schleich, Joachim & Walz, Rainer & Ragwitz, Mario, 2017. "Effects of policies on patenting in wind-power technologies," Energy Policy, Elsevier, vol. 108(C), pages 684-695.
    33. Costa-Campi, María Teresa & García-Quevedo, José & Segarra, Agustí, 2015. "Energy efficiency determinants: An empirical analysis of Spanish innovative firms," Energy Policy, Elsevier, vol. 83(C), pages 229-239.
    34. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09j0h0ji242 is not listed on IDEAS
    35. Costantini, Valeria & Crespi, Francesco & Palma, Alessandro, 2017. "Characterizing the policy mix and its impact on eco-innovation: A patent analysis of energy-efficient technologies," Research Policy, Elsevier, vol. 46(4), pages 799-819.
    36. Spyros Arvanitis & Michael Peneder & Christian Rammer & Tobias Stucki & Martin Wörter, 2016. "How Different Policy Instruments Affect the Creation of Green Energy Innovation: A Differentiated Perspective," KOF Working papers 16-417, KOF Swiss Economic Institute, ETH Zurich.
    37. Bettina Peters & Christian Rammer, 2013. "Innovation panel surveys in Germany," Chapters, in: Fred Gault (ed.), Handbook of Innovation Indicators and Measurement, chapter 6, pages 135-177, Edward Elgar Publishing.
    38. Foster, Edward & Contestabile, Marcello & Blazquez, Jorge & Manzano, Baltasar & Workman, Mark & Shah, Nilay, 2017. "The unstudied barriers to widespread renewable energy deployment: Fossil fuel price responses," Energy Policy, Elsevier, vol. 103(C), pages 258-264.
    39. Horbach, Jens & Jacob, Jojo, 2017. "The relevance of personal characteristics and gender diversity for (eco)-innovation activities at the firm-level : Results from a linked employer-employee database in Germany," IAB-Discussion Paper 201711, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    Full references (including those not matched with items on IDEAS)

    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. Horbach, Jens & Rammer, Christian, 2017. "Energy transition in Germany and regional spillovers: What triggers the diffusion of renewable energy in firms?," ZEW Discussion Papers 17-044, ZEW - Leibniz Centre for European Economic Research.
    2. David Popp, 2019. "Environmental policy and innovation: a decade of research," CESifo Working Paper Series 7544, CESifo.
    3. David Popp, 2019. "Environmental Policy and Innovation: A Decade of Research," NBER Working Papers 25631, National Bureau of Economic Research, Inc.
    4. Nicolò Barbieri & Claudia Ghisetti & Marianna Gilli & Giovanni Marin & Francesco Nicolli, 2016. "A Survey Of The Literature On Environmental Innovation Based On Main Path Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 596-623, July.
    5. Spyros Arvanitis & Michael Peneder & Christian Rammer & Tobias Stucki & Martin Wörter, 2016. "The adoption of green energy technologies: The role of policies in an international comparison," KOF Working papers 16-411, KOF Swiss Economic Institute, ETH Zurich.
    6. Rammer, Christian & Gottschalk, Sandra & Peneder, Michael & Wörter, Martin & Stucki, Tobias & Arvanitis, Spyros, 2017. "Does energy policy hurt international competitiveness of firms? A comparative study for Germany, Switzerland and Austria," Energy Policy, Elsevier, vol. 109(C), pages 154-180.
    7. Spyros Arvanitis & Michael Peneder & Christian Rammer & Tobias Stucki & Martin Wörter, 2016. "How Different Policy Instruments Affect the Creation of Green Energy Innovation: A Differentiated Perspective," KOF Working papers 16-417, KOF Swiss Economic Institute, ETH Zurich.
    8. Hille, Erik & Althammer, Wilhelm & Diederich, Henning, 2020. "Environmental regulation and innovation in renewable energy technologies: Does the policy instrument matter?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    9. Siedschlag, Iulia & Meneto, Stefano & Tong Koecklin, Manuel, 2019. "Determinants of green innovations: Firm-level evidence," Papers WP643, Economic and Social Research Institute (ESRI).
    10. Greco, Marco & Germani, Francesca & Grimaldi, Michele & Radicic, Dragana, 2022. "Policy mix or policy mess? Effects of cross-instrumental policy mix on eco-innovation in German firms," Technovation, Elsevier, vol. 117(C).
    11. Rogge, Karoline S. & Schleich, Joachim, 2018. "Do policy mix characteristics matter for low-carbon innovation? A survey-based exploration of renewable power generation technologies in Germany," Research Policy, Elsevier, vol. 47(9), pages 1639-1654.
    12. Peiró-Signes, Ángel & Segarra-Oña, Marival & Trull-Domínguez, Óscar & Sánchez-Planelles, Joaquín, 2022. "Exposing the ideal combination of endogenous–exogenous drivers for companies’ ecoinnovative orientation: Results from machine-learning methods," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    13. Sebastian Losacker & Hendrik Hansmeier & Jens Horbach & Ingo Liefner, 2023. "The geography of environmental innovation: a critical review and agenda for future research," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 43(2), pages 291-316, August.
    14. Filiou, Despoina & Kesidou, Effie & Wu, Lichao, 2023. "Are smart cities green? The role of environmental and digital policies for Eco-innovation in China," World Development, Elsevier, vol. 165(C).
    15. Nuñez-Jimenez, Alejandro & Knoeri, Christof & Hoppmann, Joern & Hoffmann, Volker H., 2022. "Beyond innovation and deployment: Modeling the impact of technology-push and demand-pull policies in Germany's solar policy mix," Research Policy, Elsevier, vol. 51(10).
    16. Costantini, Valeria & Crespi, Francesco & Palma, Alessandro, 2017. "Characterizing the policy mix and its impact on eco-innovation: A patent analysis of energy-efficient technologies," Research Policy, Elsevier, vol. 46(4), pages 799-819.
    17. Sanni, Maruf, 2018. "Drivers of eco-innovation in the manufacturing sector of Nigeria," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 303-314.
    18. Fernanda Q. Sperotto & Iván G. P. Tartaruga, 2021. "The Green Side of Industry: The Drivers and the Impacts of ECO-Innovations in Brazil," Sustainability, MDPI, vol. 13(14), pages 1-23, July.
    19. María del Carmen Galera-Quiles & Laura Piedra-Muñoz & Emilio Galdeano-Gómez & Angel Carreño-Ortega, 2021. "A Review of Eco-Innovations and Exports Interrelationship, with Special Reference to International Agrifood Supply Chains," Sustainability, MDPI, vol. 13(3), pages 1-21, January.
    20. Herman, Kyle S. & Xiang, Jun, 2019. "Induced innovation in clean energy technologies from foreign environmental policy stringency?," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 198-207.

    More about this item

    Keywords

    C25; O31; Q20; R11; Eco-innovation; Community Innovation Survey; Renewable energy; Innovation diffusion; Mixed-effects probit regression;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    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:121:y:2018:i:c:p:404-414. 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.