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Heterogeneous policies, heterogenous technologies : the case of renewable energy

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  • Francesco Nicolli

    (Facoltà di Economia (Faculty of Economics) - Università degli Studi di Ferrara)

  • Francesco Vona

    () (Facoltà di Economia (Faculty of Economics) - Università degli Studi di Ferrara)

Abstract

This paper investigates empirically the effect of market regulation and renewable energy policies on innovation activity in different renewable energy technologies. For the EU countries and the years 1980 to 2007, we built a unique dataset containing information on patent production in eight different technologies, proxies of market regulation and technology-specific renewable energy policies. Our main findings show that lowering entry barriers is a more significant driver of renewable energy innovation than privatisation and unbundling, but its effect varies across technologies, being stronger in technologies characterised by the potential entry of small, independent power producers. Additionally, the inducement effect of renewable energy policies is heterogeneous and more pronounced for wind, which is the only technology that is mature and has high technological potential. Finally, the ratification of the Kyoto protocol – determining a more stable and less uncertain policy framework - amplifies the inducement effect of both energy policy and market liberalisation.

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  • Francesco Nicolli & Francesco Vona, 2014. "Heterogeneous policies, heterogenous technologies : the case of renewable energy," Working Papers hal-01087864, HAL.
  • Handle: RePEc:hal:wpaper:hal-01087864
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-01087864
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    Cited by:

    1. Hille, Erik & Althammer, Wilhelm & Diederich, Henning, 2019. "Environmental regulation and innovation in renewable energy technologies: Does the policy instrument matter?," Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203482, Verein für Socialpolitik / German Economic Association.
    2. Patricia Laurens & Christian Bas & Antoine Schoen & Stéphane Lhuillery, 2016. "Technological contribution of MNEs to the growth of energy-greentech sector in the early post-Kyoto period," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(2), pages 169-191, April.
    3. Nesta, Lionel & Verdolini, Elena & Vona, Francesco, 2018. "Threshold Policy Effects and Directed Technical Change in Energy Innovation," CSI: Climate and Sustainable Innovation 268731, Fondazione Eni Enrico Mattei (FEEM).
    4. Böhringer, Christoph & Cuntz, Alexander & Harhoff, Dietmar & Asane-Otoo, Emmanuel, 2017. "The impact of the German feed-in tariff scheme on innovation: Evidence based on patent filings in renewable energy technologies," Energy Economics, Elsevier, vol. 67(C), pages 545-553.
    5. Verdolini, Elena & Vona, Francesco & Popp, David, 2018. "Bridging the gap: Do fast-reacting fossil technologies facilitate renewable energy diffusion?," Energy Policy, Elsevier, vol. 116(C), pages 242-256.
    6. Lin, Boqiang & Chen, Yufang, 2019. "Does electricity price matter for innovation in renewable energy technologies in China?," Energy Economics, Elsevier, vol. 78(C), pages 259-266.
    7. Palage, Kristoffer & Lundmark, Robert & Söderholm, Patrik, 2019. "The impact of pilot and demonstration plants on innovation: The case of advanced biofuel patenting in the European Union," International Journal of Production Economics, Elsevier, vol. 210(C), pages 42-55.
    8. Conti, C. & Mancusi, M.L. & Sanna-Randaccio, F. & Sestini, R. & Verdolini, E., 2018. "Transition towards a green economy in Europe: Innovation and knowledge integration in the renewable energy sector," Research Policy, Elsevier, vol. 47(10), pages 1996-2009.
    9. Kahouli, Bassem, 2018. "The causality link between energy electricity consumption, CO2 emissions, R&D stocks and economic growth in Mediterranean countries (MCs)," Energy, Elsevier, vol. 145(C), pages 388-399.
    10. Lin, Boqiang & Chen, Yufang, 2019. "Impacts of policies on innovation in wind power technologies in China," Applied Energy, Elsevier, vol. 247(C), pages 682-691.
    11. Marques, António Cardoso & Fuinhas, José Alberto & Pereira, Diogo Santos, 2019. "The dynamics of the short and long-run effects of public policies supporting renewable energy: A comparative study of installed capacity and electricity generation," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 188-206.
    12. Bongsuk Sung & Woo-Yong Song, 2017. "Does Dynamic Efficiency of Public Policy Promote Export Prformance? Evidence from Bioenergy Technology Sector," Energies, MDPI, Open Access Journal, vol. 10(12), pages 1-18, December.
    13. Kristoffer Palage & Robert Lundmark & Patrik Söderholm, 2019. "The innovation effects of renewable energy policies and their interaction: the case of solar photovoltaics," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 217-254, April.
    14. Herman, Kyle S. & Xiang, Jun, 2019. "Induced innovation in clean energy technologies from foreign environmental policy stringency?," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 198-207.
    15. Gaspari, Michele & Lorenzoni, Arturo, 2018. "The governance for distributed energy resources in the Italian electricity market: A driver for innovation?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3623-3632.
    16. Guillaume Bourgeois & Sandrine Mathy & Philippe Menanteau, 2017. "The effect of climate policies on renewable energies : a review of econometric studies
      [L’effet des politiques climatiques sur les énergies renouvelables : une revue des études économétriques]
      ," Post-Print hal-01585906, HAL.
    17. Schleich, Joachim & Walz, Rainer & Ragwitz, Mario, 2017. "Effects of policies on patenting in wind-power technologies," Energy Policy, Elsevier, vol. 108(C), pages 684-695.
    18. Arbolino, Roberta & Boffardi, Raffaele & Ioppolo, Giuseppe, 2019. "The effectiveness of European energy policy on the Italian system: Regional evidences from a hierarchical cluster analysis approach," Energy Policy, Elsevier, vol. 132(C), pages 47-61.
    19. Lionel Nesta & Elena Verdolini & Francesco Vona, 2018. "Threshold Policy Effects and Directed Technical Change in Energy Innovation," GREDEG Working Papers 2018-01, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.

    More about this item

    Keywords

    renewable energy certificates;

    JEL classification:

    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • 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
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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