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The impact of the EU ETS on the sectoral innovation system for power generation technologies - Findings for Germany

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  • Rogge, Karoline S.
  • Hoffmann, Volker H.

Abstract

This paper provides an overview of early changes in the sectoral innovation system for power generation technologies which have been triggered by the European Emission Trading System (EU ETS). Based on a broad definition of the sector, our research analyses the impact of the EU ETS on the four building blocks 'knowledge and technologies', 'actors and networks', 'institutions', and 'demand' by combining two streams of literature, namely systems of innovation and environmental economics. Our analysis for Germany is based on 42 exploratory interviews with experts in the field of the EU ETS, the power sector, and technological innovation. We find that the EU ETS mainly affects the rate and direction of technological change of power generation technologies within the large-scale, coal-based power generation technological regime, to which carbon capture technologies are added as a new technological trajectory. While this impact can be interpreted as the defensive behaviour of incumbents, the observed changes should not be underestimated. We argue that the EU ETS' impact on corporate CO2 culture and routines may prepare the ground for the transition to a low-carbon sectoral innovation system for power generation technologies.

Suggested Citation

  • Rogge, Karoline S. & Hoffmann, Volker H., 2010. "The impact of the EU ETS on the sectoral innovation system for power generation technologies - Findings for Germany," Energy Policy, Elsevier, vol. 38(12), pages 7639-7652, December.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:12:p:7639-7652
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    References listed on IDEAS

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    Cited by:

    1. Tilmann Rave & Ursula Triebswetter & Johann Wackerbauer, 2013. "Koordination von Innovations-, Energie- und Umweltpolitik," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61, October.
    2. Fan, Ying & Wu, Jie & Xia, Yan & Liu, Jing-Yu, 2016. "How will a nationwide carbon market affect regional economies and efficiency of CO2 emission reduction in China?," China Economic Review, Elsevier, vol. 38(C), pages 151-166.
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    4. del Río, Pablo, 2012. "The dynamic efficiency of feed-in tariffs: The impact of different design elements," Energy Policy, Elsevier, vol. 41(C), pages 139-151.
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    6. repec:gam:jeners:v:9:y:2016:i:5:p:329:d:69380 is not listed on IDEAS
    7. Rogge, Karoline S. & Schneider, Malte & Hoffmann, Volker H., 2011. "The innovation impact of the EU Emission Trading System -- Findings of company case studies in the German power sector," Ecological Economics, Elsevier, vol. 70(3), pages 513-523, January.
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    15. Polzin, Friedemann & Migendt, Michael & Täube, Florian A. & von Flotow, Paschen, 2015. "Public policy influence on renewable energy investments—A panel data study across OECD countries," Energy Policy, Elsevier, vol. 80(C), pages 98-111.
    16. Devlin, Joseph & Li, Kang & Higgins, Paraic & Foley, Aoife, 2017. "Gas generation and wind power: A review of unlikely allies in the United Kingdom and Ireland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 757-768.
    17. Zhang, Yue-Jun & Peng, Yu-Lu & Ma, Chao-Qun & Shen, Bo, 2017. "Can environmental innovation facilitate carbon emissions reduction? Evidence from China," Energy Policy, Elsevier, vol. 100(C), pages 18-28.
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    19. repec:eee:ecolec:v:140:y:2017:i:c:p:241-250 is not listed on IDEAS
    20. 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.
    21. Martínez Arranz, Alfonso, 2015. "Carbon capture and storage: Frames and blind spots," Energy Policy, Elsevier, vol. 82(C), pages 249-259.
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    23. Shihong Zeng & Yan Xu & Liming Wang & Jiuying Chen & Qirong Li, 2016. "Forecasting the Allocative Efficiency of Carbon Emission Allowance Financial Assets in China at the Provincial Level in 2020," Energies, MDPI, Open Access Journal, vol. 9(5), pages 1-18, May.
    24. Brockmann, Karl Ludwig & Heindl, Peter & Löschel, Andreas & Lutz, Benjamin & Schumacher, Jan, 2012. "KfW/ZEW CO2 Barometer 2012: Anreizwirkung des EU-Emissionshandels auf Unternehmen gering – Klimapolitische Regulierung wenig relevant für Standortentscheidungen," KfW/ZEW-CO2-Barometer, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 109796.

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