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Bridging the Gap: Do Fast Reacting Fossil Technologies Facilitate Renewable Energy Diffusion?

Author

Listed:
  • Elena Verdolini

  • Francesco Vona

  • David Popp

Abstract

This paper discusses the role of fossil-based power generation technologies in supporting renewable energy investments. It studies the deployment of technologies conditional on all other drivers in 26 OECD countries between 1990 and 2013. It shows that a 1% percent increase in the share of fast-reacting fossil generation capacity is associated with a 0.88% percent increase in renewable in the long run. These results are robust to various modifications in the empirical strategy, and most notably to the use of system-GMM techniques to account for the interdependence of renewable and fast-reacting fossil investment decisions. [Working Paper 22454]

Suggested Citation

  • Elena Verdolini & Francesco Vona & David Popp, 2016. "Bridging the Gap: Do Fast Reacting Fossil Technologies Facilitate Renewable Energy Diffusion?," Working Papers id:11125, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:11125
    Note: Institutional Papers
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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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