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Public Support for the Financing of RD&D Activities in New Clean Energy Technologies

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Author Info

  • Luis Olmos
  • Sophia Ruester
  • Siok Jen Liong
  • Jean-Michel Glachant

Abstract

Several market failures, as well as other technical, economic and regulatory barriers to the market penetration of clean energy technologies result in under-investment of private innovators in RD&D. Therefore, public support is needed in order to induce innovations. Policy tools creating market conditions that are attractive for the exploitation of clean technologies (market pull) must be combined with other tools directly supporting the development of these technologies through the provision of public funds (technology push). Thereby, financing policy instruments should be chosen so that their characteristics match with those of the specific innovation process being targeted at the same time that social welfare is maximized. We develop an analytical framework to define the form of public support and to provide recommendations on the optimal choice of both technology push and market pull instruments.

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File URL: http://cadmus.eui.eu/bitstream/handle/1814/14618/RSCAS_2010_69.pdf
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Bibliographic Info

Paper provided by European University Institute in its series RSCAS Working Papers with number 2010/69.

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Date of creation: 17 Sep 2010
Date of revision:
Handle: RePEc:rsc:rsceui:2010/69

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Web page: http://www.eui.eu/RSCAS/
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Related research

Keywords: clean energy technologies; innovation finance; public support; technology push; market pull;

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Cited by:
  1. J-M- Glachant & H. Khalfallah & Y. Perez & V. Rious & M. Saguan, 2013. "Implementing Incentive Regulation and Regulatory Alignment with Resource Bounded Regulators," Competition and Regulation in Network Industries, Intersentia, vol. 14(3), pages 265-291, September.
  2. Jean-Michel Glachant & Haikel Khalfallah & Yannick Perez & Vincent Rious & Marcelo Saguan, 2013. "Implementing incentive regulation through an alignment with resource bounded regulators," Post-Print halshs-00767872, HAL.

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