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The Role of Knowledge: Technological Innovation in the Energy System

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  • Robert W. Fri

Abstract

Technological innovation will continue to be essential in the energy system for both economic and public policy reasons. The process of innovation is typically incremental, cumulative, and assimilative. Innovation may produce revolutionary outcomes through the accumulation of small steps, or because it introduces new performance characteristics that the market values. In some circumstances, public policy intervention to overcome obstacles to innovation may be justified to secure public benefits. One obstacle is that innovators may be unable to capture all of the available economic benefits of innovation. Another is that economic benefits may not be available and the value of the public good has not been internalized in the market. Experience with energy innovation suggests government intervention works best when it is carefully targeted on specific obstacles. Why some government policies have not been successful and suggestions for new policy approaches that might be useful are also discussed.

Suggested Citation

  • Robert W. Fri, 2003. "The Role of Knowledge: Technological Innovation in the Energy System," The Energy Journal, , vol. 24(4), pages 51-74, October.
    • Handle: RePEc:sae:enejou:v:24:y:2003:i:4:p:51-74
    DOI: 10.5547/ISSN0195-6574-EJ-Vol24-No4-3
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    References listed on IDEAS

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    1. Burtraw, Dallas, 2000. "Innovation Under the Tradable Sulfur Dioxide Emission Permits Program in the U.S. Electricity Sector," RFF Working Paper Series dp-00-38, Resources for the Future.
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    Cited by:

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    2. Muhammad Shahbaz & Nikunj Patel, 2025. "Sustainable development in a carbon‐conscious world: Quantile regression insights into CO2 emission drivers," Natural Resources Forum, Blackwell Publishing, vol. 49(2), pages 1560-1583, May.
    3. Szablewski, Andrzej T., . "Implikacje unijnej polityki klimatycznej ze szczególnym uwzględnieniem sektora elektroenergetycznego," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2010(7-8).

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