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Scaling up Renewable Energy Storage with Sodium Ion Batteries and Green Technology Policy

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  • Lavinia Heisenberg
  • Richhild Moessner

Abstract

A key element in the transition to net zero carbon emissions is increasing the use of renewable energy, especially wind and solar energy, and scaling up energy storage sustainably to enable their greater use. This paper discusses the advantages and challenges of scaling up renewable energy storage with increased development and use of sodium ion batteries, and the role for green technology policy in addressing the externalities associated with these challenges. Sodium ion batteries can be built without the use of lithium and cobalt, in contrast to commonly used lithium ion batteries, thereby avoiding large environmental and social costs associated with mining of lithium and cobalt. There are externalities in building a recycling system for sodium ion batteries, since its components are not very valuable. Moreover, there are network externalities in building large-scale grid storage infrastructure, for which sodium ion batteries are suitable. Due to these externalities, there is a role for green technology support policies in helping to scale up renewable energy storage with sodium ion batteries.

Suggested Citation

  • Lavinia Heisenberg & Richhild Moessner, 2025. "Scaling up Renewable Energy Storage with Sodium Ion Batteries and Green Technology Policy," CESifo Working Paper Series 11803, CESifo.
    • Handle: RePEc:ces:ceswps:_11803
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    References listed on IDEAS

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    1. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
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    3. Emanuel Kohlscheen & Richhild Moessner & Elod Takáts, 2021. "Effects of Carbon Pricing and Other Climate Policies on CO2 Emissions," CESifo Working Paper Series 9347, CESifo.
    4. Gilbert E. Metcalf & James H. Stock, 2023. "The Macroeconomic Impact of Europe's Carbon Taxes," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(3), pages 265-286, July.
    5. Nicholas Stern, 2008. "The Economics of Climate Change," American Economic Review, American Economic Association, vol. 98(2), pages 1-37, May.
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    Keywords

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    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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