Energy R&D in private and state-owned utilities: an analysis of the major world electric companies
AbstractThe last two decades have witnessed a staggering decline of R&D investment in the fields of energy and electricity. This paper contends that this widespread phenomenon is mainly ascribable to the processes of liberalisation and privatisation of electricity markets which have induced electric utilities to dramatically reduce R&D expenditures. A closer inspection to recent data concerned with ten major electric companies of the world shows that the drop of research expenditures was particularly strong among the private or newly-privatised companies. Instead, those that remained under public control did not reduce R&D efforts and such a choice was not at odds with the goal of increasing company profits. According to these findings and to the widely recognised need of a surge of energy R&D, radical policy measures seem necessary. Along with an R&D obligation for private electric utilities, also an extension of public ownership or the introduction of public-private partnerships should be seriously taken into account.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2010-29.
Date of creation: 27 Sep 2010
Date of revision:
Energy R&D; Electric utilities; Public and private enterprises;
Other versions of this item:
- Sterlacchini, Alessandro, 2012. "Energy R&D in private and state-owned utilities: An analysis of the major world electric companies," Energy Policy, Elsevier, vol. 41(C), pages 494-506.
- Sterlacchini, Alessandro, 2010. "Energy R&D in private and state-owned utilities: an analysis of the major world electric companies," MPRA Paper 20972, University Library of Munich, Germany.
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jamasb, Tooraj & Pollitt, Michael, 2008. "Liberalisation and R&D in network industries: The case of the electricity industry," Research Policy, Elsevier, vol. 37(6-7), pages 995-1008, July.
- Machiel Mulder & Victoria Shestalova & Gijsbert Zwart, 2006. "Liberalisation of European energy markets: challenges and policy options," CPB Document 138, CPB Netherlands Bureau for Economic Policy Analysis.
- Dooley, J J, 1998. "Unintended consequences: energy R&D in a deregulated energy market," Energy Policy, Elsevier, vol. 26(7), pages 547-555, June.
- Munari, Federico & Roberts, Edward B. & Sobrero, Maurizio, 2002. "Privatization processes and the redefinition of corporate R&D boundaries," Research Policy, Elsevier, vol. 31(1), pages 31-53, January.
- Nemet, Gregory F. & Kammen, Daniel M., 2007. "U.S. energy research and development: Declining investment, increasing need, and the feasibility of expansion," Energy Policy, Elsevier, vol. 35(1), pages 746-755, January.
- Paroma Sanyal, 2007. "The effect of deregulation on environmental research by electric utilities," Journal of Regulatory Economics, Springer, vol. 31(3), pages 335-353, June.
- Luc BERNIER & Louis SIMARD, 2007. "The Governance Of Public Enterprises: The Quebec Experience," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(3), pages 455-474, 09.
- Calderini, Mario & Garrone, Paola, 2001. "Liberalisation, industry turmoil and the balance of R&D activities," Information Economics and Policy, Elsevier, vol. 13(2), pages 199-230, June.
- Maria Teresa Costa-Campi & Néstor Duch-Brown & José García-Quevedo, 2013. "R&D drivers and obstacles to innovation in the energy industry," Working Papers 2013/23, Institut d'Economia de Barcelona (IEB).
- AGRELL, Per & BOGETOFT, Peter, 2011.
"Smart-grid investments, regulation and organization,"
CORE Discussion Papers
2011072, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Agrell, Per J. & Bogetoft, Peter & Mikkers, Misja, 2013. "Smart-grid investments, regulation and organization," Energy Policy, Elsevier, vol. 52(C), pages 656-666.
- AGRELL, Per J. & BOGETOFT, Peter & MIKKERS, Misja, . "Smart-grid investments, regulation and organization," CORE Discussion Papers RP -2457, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Lionel Nesta & Francesco Vona & Francesco Nicolli, 2012.
"Environmental Policies, Product Market Regulation and Innovation in Renewable Energy,"
2012.90, Fondazione Eni Enrico Mattei.
- 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.
- Lionel Nesta & Francesco Vona & Francesco Nicolli, 2012. "Environmental policies, product market regulation and innovation in renewable energy," Documents de Travail de l'OFCE 2012-25, Observatoire Francais des Conjonctures Economiques (OFCE).
- Schmitt, Stephan & Kucsera, Denes, 2013. "The Impact of the Regulatory Reform Process on R&D Investment of European Electricity Utilities," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80035, Verein für Socialpolitik / German Economic Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (DEMM Working Papers).
If references are entirely missing, you can add them using this form.