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On the selection of financing instruments to push the development of new technologies: Application to clean energy technologies

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  • Olmos, Luis
  • Ruester, Sophia
  • Liong, Siok-Jen

Abstract

Achieving climate policy goals requires mobilizing public funds to bring still immature clean technologies to competitiveness and create new technological options. The format of direct public support must be tailored to the characteristics of technologies addressed. Based on the experience accumulated with innovation programs, we have identified those features of innovation that should directly condition the choice of direct support instruments. These include the funding gap between the cost of innovation activities and the amount of private funds leveraged; the ability of technologies targeted to compete for public funds in the market; the probability that these technologies fail to reach the market; and the type of entity best suited to conduct these activities.

Suggested Citation

  • Olmos, Luis & Ruester, Sophia & Liong, Siok-Jen, 2012. "On the selection of financing instruments to push the development of new technologies: Application to clean energy technologies," Energy Policy, Elsevier, vol. 43(C), pages 252-266.
  • Handle: RePEc:eee:enepol:v:43:y:2012:i:c:p:252-266
    DOI: 10.1016/j.enpol.2012.01.001
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    References listed on IDEAS

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    1. Wang, Taiyuan & Thornhill, Stewart, 2010. "R&D investment and financing choices: A comprehensive perspective," Research Policy, Elsevier, vol. 39(9), pages 1148-1159, November.
    2. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
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    8. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3, Specia), pages 783-832.
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    Citations

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    Cited by:

    1. Ruester, Sophia & Schwenen, Sebastian & Finger, Matthias & Glachant, Jean-Michel, 2014. "A post-2020 EU energy technology policy: Revisiting the strategic energy technology plan," Energy Policy, Elsevier, vol. 66(C), pages 209-217.
    2. Changjie Zhan & Martin De Jong, 2017. "Financing Sino-Singapore Tianjin Eco-City: What Lessons Can Be Drawn for Other Large-Scale Sustainable City-Projects?," Sustainability, MDPI, Open Access Journal, vol. 9(2), pages 1-17, February.
    3. Polzin, Friedemann & von Flotow, Paschen & Klerkx, Laurens, 2016. "Addressing barriers to eco-innovation: Exploring the finance mobilisation functions of institutional innovation intermediaries," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 34-46.
    4. repec:taf:tcpoxx:v:17:y:2017:i:0:p:s131-s147 is not listed on IDEAS
    5. Corsatea, Teodora Diana & Giaccaria, Sergio & Arántegui, Roberto Lacal, 2014. "The role of sources of finance on the development of wind technology," Renewable Energy, Elsevier, vol. 66(C), pages 140-149.
    6. Zhang, Dayong & Cao, Hong & Zou, Peijiang, 2016. "Exuberance in China's renewable energy investment: Rationality, capital structure and implications with firm level evidence," Energy Policy, Elsevier, vol. 95(C), pages 468-478.
    7. repec:eee:rensus:v:77:y:2017:i:c:p:525-535 is not listed on IDEAS
    8. Alizadeh, Reza & Lund, Peter D. & Beynaghi, Ali & Abolghasemi, Mahdi & Maknoon, Reza, 2016. "An integrated scenario-based robust planning approach for foresight and strategic management with application to energy industry," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 162-171.
    9. repec:eco:journ2:2017-02-23 is not listed on IDEAS
    10. Teodora Diana Corsatea, 2016. "Localised knowledge, local policies and regional innovation activity for renewable energy technologies: Evidence from Italy," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 443-466, August.
    11. F.H.J. Polzin & M.W.J.L. Sanders & Florian Täube, 2017. "A diverse and resilient financial system for investments in the energy transition," Working Papers 17-03, Utrecht School of Economics.
    12. Bobinaite, Viktorija & Tarvydas, Dalius, 2014. "Financing instruments and channels for the increasing production and consumption of renewable energy: Lithuanian case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 259-276.
    13. 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.
    14. repec:eee:rensus:v:90:y:2018:i:c:p:937-944 is not listed on IDEAS
    15. Delina, Laurence L. & Diesendorf, Mark, 2013. "Is wartime mobilisation a suitable policy model for rapid national climate mitigation?," Energy Policy, Elsevier, vol. 58(C), pages 371-380.
    16. repec:zbw:espost:180853 is not listed on IDEAS
    17. repec:eee:enepol:v:113:y:2018:i:c:p:430-438 is not listed on IDEAS
    18. Andor, Mark Andreas & Frondel, Manuel & Neuhoff, Karsten & Petrick, Sebastian & Rüster, Sophia, 2016. "Klimaschutzpolitik in Europa: Wie kann ein Politikmix gestaltet werden?," RWI Materialien 103, RWI - Leibniz-Institut für Wirtschaftsforschung.
    19. Teodora Corsatea & Hubert Jayet, 2014. "Spatial patterns of innovation activities in France: market’s role versus public research efforts," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(3), pages 739-762, May.

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