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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))

  • Francesco Vona

    (Observatoire français des conjonctures économiques)

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.

Suggested Citation

  • Francesco Nicolli & Francesco Vona, 2014. "Heterogeneous policies, heterogenous technologies : the case of renewable energy," Sciences Po publications 2014-15, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/4b9o704lm99vm9u7s9e6fdpp6r
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    More about this item

    Keywords

    renewable energy technology; environmental innovation; heterogenous policy effect; feedin tariff; renewable energy certificates; entry barrier;
    All these keywords.

    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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