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Dynamic Policy Impacts on a Technological-Change System of Renewable Energy: An Empirical Analysis

Author

Listed:
  • Kyunam Kim

    (Korea Information Society Development Institute (KISDI))

  • Eunnyeong Heo

    (Seoul National University)

  • Yeonbae Kim

    (Seoul National University)

Abstract

Recently, harmonization of renewable energy policies has drawn growing attention as an important issue. To find the most effective combination, this paper identifies simultaneous interactions in an endogenous technological-change system and analyzes empirically the static and dynamic impacts of renewable energy policies in solar PV and wind power. The empirical results indicate that policy outcomes create a virtuous cycle in the technological change system through market oppurntunity, learning-by-searching, and learning-by-doing. According to the results, the static impact of technology-push and tariff incentive policies are effective on invention, while renwables obligation and CO2 tax appear to encourage cost reduction in the technologies. When the dynamic impacts of policy are considered, tariff incentives appears to outperform a renewables obligation policy with very small margin.We also found that the dynamic impact of CO2 tax varies with the level of technological development maturity.

Suggested Citation

  • Kyunam Kim & Eunnyeong Heo & Yeonbae Kim, 2017. "Dynamic Policy Impacts on a Technological-Change System of Renewable Energy: An Empirical Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(2), pages 205-236, February.
    • Handle: RePEc:kap:enreec:v:66:y:2017:i:2:d:10.1007_s10640-015-9946-5
    DOI: 10.1007/s10640-015-9946-5
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    4. Li, George Yunxiong & Ascani, Andrea & Iammarino, Simona, 2024. "The material basis of modern technologies. A case study on rare metals," Research Policy, Elsevier, vol. 53(1).
    5. Ogura, Yasuhiro, 2020. "Policy as a “porter” of RE component export or import? Evidence from PV/wind energy in OECD and BRICS," Energy Economics, Elsevier, vol. 86(C).
    6. David Popp, 2019. "Environmental policy and innovation: a decade of research," CESifo Working Paper Series 7544, CESifo.
    7. Brehm, Johannes & aus dem Moore, Nils & Gruhl, Henri, 2022. "Driving Innovation? – Carbon Tax Effects in the Swedish Transport Sector," VfS Annual Conference 2022 (Basel): Big Data in Economics 264085, Verein für Socialpolitik / German Economic Association.
    8. Consolación Quintana-Rojo & Fernando E. Callejas-Albiñana & Miguel-Angel Tarancón & Pablo del Río, 2019. "Identifying the Drivers of Wind Capacity Additions: The Case of Spain. A Multiequational Approach," Energies, MDPI, vol. 12(10), pages 1-19, May.
    9. Guillaume Bourgeois & Sandrine Mathy & Philippe Menanteau, 2017. "The effect of climate policies on renewable energies : a review of econometric studies [L’effet des politiques climatiques sur les énergies renouvelables : une revue des études économétriques]," Post-Print hal-01585906, HAL.
    10. Consolación Quintana-Rojo & Fernando-Evaristo Callejas-Albiñana & Miguel-Ángel Tarancón & Isabel Martínez-Rodríguez, 2020. "Econometric Studies on the Development of Renewable Energy Sources to Support the European Union 2020–2030 Climate and Energy Framework: A Critical Appraisal," Sustainability, MDPI, vol. 12(12), pages 1-26, June.
    11. Hanee Ryu & Hyejae Jung, 2021. "Impact of public R&D as market matures: Evidence from solar PV industry," Energy & Environment, , vol. 32(8), pages 1543-1558, December.
    12. Zhang, Dan & Zheng, Mingbo & Feng, Gen-Fu & Chang, Chun-Ping, 2022. "Does an environmental policy bring to green innovation in renewable energy?," Renewable Energy, Elsevier, vol. 195(C), pages 1113-1124.

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