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From Fossil Fuels to Renewables: The Role of Electricity Storage

Author

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  • Itziar Lazkano

    () (Economics Department, University of Wisconsin-Milwaukee)

  • Linda Nøstbakken

    () (Department of Economics, Norwegian School of Economics)

  • Martino Pelli

    () (Economics Department, Université de Sherbrooke)

Abstract

Electricity storage represents a solution to curb emissions by enabling more use of intermittent renewable energy. Our goal is to empirically analyze the determinants of innovation in electricity storage and its role in fostering technological innovations in renewable and conventional electricity generation. Using a global firm-level data set of electricity patents from 1963 to 2011, we find that better electricity storage promotes innovation not only in renewable energy but also in conventional technologies. Specifically, our estimates show that an additional storage patent increases the probability to apply for patents in renewable energy and efficiency-improving fossil fuel technologies two years from now by 1.11% and 0.66%, respectively. This implies that improved electricity storage technologies can boost the energy efficiency of conventional, fossil fuel-fired power plants as well as increase the use of renewable electricity. Thus, the ability of electricity storage to curb carbon emissions depends on: the competitiveness of renewable energy against conventional electricity generation, and conventional power generation mix as storage increases fossil-fuel efficiency and reduces ramping costs.

Suggested Citation

  • Itziar Lazkano & Linda Nøstbakken & Martino Pelli, 2017. "From Fossil Fuels to Renewables: The Role of Electricity Storage," Cahiers de recherche 17-06, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
  • Handle: RePEc:shr:wpaper:17-06
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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1706.pdf
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    References listed on IDEAS

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    Cited by:

    1. Lazkano, Itziar & Pham, Linh, 2016. "Do Fossil fuel Taxes Promote Innovation in Renewable Electricity Generation?," Discussion Paper Series in Economics 16/2016, Norwegian School of Economics, Department of Economics.
    2. Lazkano, Itziar & Nøstbakken, Linda & Pelli, Martino, 2017. "From fossil fuels to renewables: The role of electricity storage," European Economic Review, Elsevier, vol. 99(C), pages 113-129.

    More about this item

    Keywords

    Electricity storage; Innovation; Electricity; Directed technical change.;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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