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Supplier strategies and responses to institutional drivers for an emerging energy technology

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  • Neil Strachan
  • Hadi Dowlatabadi

Abstract

This paper investigates the role of suppliers of a new energy technology, when the market for that technology continues to be in a state of flux, and is characterised by continued regulatory and institutional developments. This paper first summarises the institutional drivers resulting in the widely divergent diffusion of distributed generation (DG) based on natural gas engines in the Netherlands and the UK. Then, supplier responses to this institutionally driven market are discussed. Under regulatory support, supply firms were able to implement innovative operational and ownership arrangements, hugely growing the market while positioning themselves for new R&D and market developments. Under regulatory restrictions, supply firms fought to survive, with resultant implications for the reputation and longer term prospects for this new energy technology. The paper concludes by discussing how continuing institutional instability can limit the supplier strategies based on spillovers from successful regulatory experiments. Thus, the establishment of a viable energy supply industry is delayed under continuing regulatory uncertainty.

Suggested Citation

  • Neil Strachan & Hadi Dowlatabadi, 2004. "Supplier strategies and responses to institutional drivers for an emerging energy technology," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 21(4), pages 383-396.
    • Handle: RePEc:ids:ijgeni:v:21:y:2004:i:4:p:383-396
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    Cited by:

    1. Richard S J Tol, 2018. "Policy Brief—Leaving an Emissions Trading Scheme: Implications for the United Kingdom and the European Union," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 183-189.

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