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Export orientation and domestic electricity generation: Effects on energy efficiency innovation in select sectors

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  • Urpelainen, Johannes

Abstract

Why are some countries developing many energy efficiency innovations, while others are lagging behind? I argue that export orientation and electricity at low variable cost from nuclear and hydropower plants have an interactive effect on energy efficiency innovation. Export-oriented countries have strong incentives to invest in energy efficiency innovation, as they are in a position to export these technology innovations for global markets. But if inexpensive electricity is supplied in a country, the domestic demand for energy efficiency innovation is missing, and so the home market cannot serve as a springboard for international commercialization. I test this theory against international patent data on energy efficiency innovation in insulation, heating, and lighting for 22 OECD countries, 1991-2007. The statistical analysis indicates that export orientation has large positive effects on energy efficiency innovation in countries that do not rely on nuclear and hydroelectricity.

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  • Urpelainen, Johannes, 2011. "Export orientation and domestic electricity generation: Effects on energy efficiency innovation in select sectors," Energy Policy, Elsevier, vol. 39(9), pages 5638-5646, September.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:9:p:5638-5646
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    3. 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.
    4. Wan, Jun & Baylis, Kathy & Mulder, Peter, 2015. "Trade-facilitated technology spillovers in energy productivity convergence processes across EU countries," Energy Economics, Elsevier, vol. 48(C), pages 253-264.
    5. Trianni, Andrea & Cagno, Enrico & Worrell, Ernst, 2013. "Innovation and adoption of energy efficient technologies: An exploratory analysis of Italian primary metal manufacturing SMEs," Energy Policy, Elsevier, vol. 61(C), pages 430-440.
    6. Alexander Melnik & Irina Naoumova & Kirill Ermolaev & Jerome Katrichis, 2021. "Driving Innovation through Energy Efficiency: A Russian Regional Analysis," Sustainability, MDPI, vol. 13(9), pages 1-19, April.
    7. Li, Ke & Lin, Boqiang, 2017. "An application of a double bootstrap to investigate the effects of technological progress on total-factor energy consumption performance in China," Energy, Elsevier, vol. 128(C), pages 575-585.
    8. Alexander Melnik & Kirill Ermolaev, 2020. "Strategy Context of Decision Making for Improved Energy Efficiency in Industrial Energy Systems," Energies, MDPI, vol. 13(7), pages 1-28, March.
    9. Yang, Zhenbing & Shao, Shuai & Yang, Lili & Liu, Jianghua, 2017. "Differentiated effects of diversified technological sources on energy-saving technological progress: Empirical evidence from China's industrial sectors," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 1379-1388.

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