IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v108y2017icp26-36.html
   My bibliography  Save this article

Renewable energy pioneers are threatened by EU policy reform

Author

Listed:
  • Hills, Jeremy M.
  • Michalena, Evanthie

Abstract

The European Commission is reforming renewable energy (RE) policy to promote European competitiveness and RE penetration but also to phase-out financial subsidies for mature RE technologies. Optimising policy can be framed in the balance of Market Pull (MP) and Policy Push (PP) factors. The role of this paper is to determine the diversity of perceptions of energy actors, how that diversity relates to the balance of MP and PP and how this is likely to influence the ongoing policy reform process. A European survey was implemented and a total of 108 responses were received. A majority of actors (>75%) thought that there was a need for new EU RE policy. Four robust clusters of actors were identified. Further analysis demonstrated that the balance of MP and PP factors were not important in distinguishing between these clusters. The analysis concluded that levels of market intervention are the primary axis of difference according to energy actors’ opinions. These results have consequences for intended policy shifts in the EU RE sector, as the reduction of market intervention could mean that some of the “RE pioneers” may leave the sector which would impact on further RE penetration and EU competitiveness.

Suggested Citation

  • Hills, Jeremy M. & Michalena, Evanthie, 2017. "Renewable energy pioneers are threatened by EU policy reform," Renewable Energy, Elsevier, vol. 108(C), pages 26-36.
    • Handle: RePEc:eee:renene:v:108:y:2017:i:c:p:26-36
    DOI: 10.1016/j.renene.2017.02.042
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148117301283
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2017.02.042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    2. Gawel, Erik & Strunz, Sebastian & Lehmann, Paul, 2014. "A public choice view on the climate and energy policy mix in the EU — How do the emissions trading scheme and support for renewable energies interact?," Energy Policy, Elsevier, vol. 64(C), pages 175-182.
    3. Margarita Genius & Phoebe Koundouri & Céline Nauges & Vangelis Tzouvelekas, 2014. "Information Transmission in Irrigation Technology Adoption and Diffusion: Social Learning, Extension Services, and Spatial Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 328-344.
    4. Gregory F. Nemet & Erin Baker, 2009. "Demand Subsidies Versus R&D: Comparing the Uncertain Impacts of Policy on a Pre-commercial Low-carbon Energy Technology," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 49-80.
    5. Peters, Michael & Schneider, Malte & Griesshaber, Tobias & Hoffmann, Volker H., 2012. "The impact of technology-push and demand-pull policies on technical change – Does the locus of policies matter?," Research Policy, Elsevier, vol. 41(8), pages 1296-1308.
    6. Albrecht, Johan & Laleman, Ruben & Vulsteke, Elien, 2015. "Balancing demand-pull and supply-push measures to support renewable electricity in Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 267-277.
    7. El Kasmioui, O. & Verbruggen, A. & Ceulemans, R., 2015. "The 2013 reforms of the Flemish renewable electricity support: Missed opportunities," Renewable Energy, Elsevier, vol. 83(C), pages 905-917.
    8. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    9. Μichalena, Evanthie & Hills, Jeremy M., 2012. "Renewable energy issues and implementation of European energy policy: The missing generation?," Energy Policy, Elsevier, vol. 45(C), pages 201-216.
    10. Mangoyana, Robert B. & Smith, Timothy F., 2011. "Decentralised bioenergy systems: A review of opportunities and threats," Energy Policy, Elsevier, vol. 39(3), pages 1286-1295, March.
    11. Creutzig, Felix & Goldschmidt, Jan Christoph & Lehmann, Paul & Schmid, Eva & von Blücher, Felix & Breyer, Christian & Fernandez, Blanca & Jakob, Michael & Knopf, Brigitte & Lohrey, Steffen & Susca, Ti, 2014. "Catching two European birds with one renewable stone: Mitigating climate change and Eurozone crisis by an energy transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 1015-1028.
    12. Michalena, Evanthie & Angeon, Valrie, 2009. "Local challenges in the promotion of renewable energy sources: The case of Crete," Energy Policy, Elsevier, vol. 37(5), pages 2018-2026, May.
    13. Hoppmann, Joern & Huenteler, Joern & Girod, Bastien, 2014. "Compulsive policy-making—The evolution of the German feed-in tariff system for solar photovoltaic power," Research Policy, Elsevier, vol. 43(8), pages 1422-1441.
    14. repec:zbw:rwirep:0353 is not listed on IDEAS
    15. Costantini, Valeria & Crespi, Francesco & Martini, Chiara & Pennacchio, Luca, 2015. "Demand-pull and technology-push public support for eco-innovation: The case of the biofuels sector," Research Policy, Elsevier, vol. 44(3), pages 577-595.
    16. Umamaheswaran, Swarnalakshmi & Rajiv, Seth, 2015. "Financing large scale wind and solar projects—A review of emerging experiences in the Indian context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 166-177.
    17. Frondel, Manuel & Schmidt, Christoph M. & Vance, Colin, 2012. "Germany's Solar Cell Promotion: An Unfolding Disaster," Ruhr Economic Papers 353, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bongsuk Sung & Woo-Yong Song, 2017. "Does Dynamic Efficiency of Public Policy Promote Export Prformance? Evidence from Bioenergy Technology Sector," Energies, MDPI, vol. 10(12), pages 1-18, December.
    2. Bongsuk Sung & Sang-Do Park, 2018. "Who Drives the Transition to a Renewable-Energy Economy? Multi-Actor Perspective on Social Innovation," Sustainability, MDPI, vol. 10(2), pages 1-32, February.
    3. Stanisław Jaworski & Mariola Chrzanowska & Monika Zielińska-Sitkiewicz & Robert Pietrzykowski & Aleksandra Jezierska-Thöle & Piotr Zielonka, 2023. "Evaluating the Progress of Renewable Energy Sources in Poland: A Multidimensional Analysis," Energies, MDPI, vol. 16(18), pages 1-21, September.
    4. Wang, Qiang & Kwan, Mei-Po & Fan, Jie & Zhou, Kan & Wang, Ya-Fei, 2019. "A study on the spatial distribution of the renewable energy industries in China and their driving factors," Renewable Energy, Elsevier, vol. 139(C), pages 161-175.
    5. Lavrič, Henrik & Rihar, Andraž & Fišer, Rastko, 2019. "Influence of equipment size and installation height on electricity production in an Archimedes screw-based ultra-low head small hydropower plant and its economic feasibility," Renewable Energy, Elsevier, vol. 142(C), pages 468-477.
    6. Rövekamp, Patrick & Schöpf, Michael & Wagon, Felix & Weibelzahl, Martin & Fridgen, Gilbert, 2021. "Renewable electricity business models in a post feed-in tariff era," Energy, Elsevier, vol. 216(C).
    7. Argentiero, Amedeo & Bollino, Carlo Andrea & Micheli, Silvia & Zopounidis, Constantin, 2018. "Renewable energy sources policies in a Bayesian DSGE model," Renewable Energy, Elsevier, vol. 120(C), pages 60-68.
    8. Paravantis, John A. & Stigka, Eleni & Mihalakakou, Giouli & Michalena, Evanthie & Hills, Jeremy M. & Dourmas, Vasilis, 2018. "Social acceptance of renewable energy projects: A contingent valuation investigation in Western Greece," Renewable Energy, Elsevier, vol. 123(C), pages 639-651.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nuñez-Jimenez, Alejandro & Knoeri, Christof & Hoppmann, Joern & Hoffmann, Volker H., 2022. "Beyond innovation and deployment: Modeling the impact of technology-push and demand-pull policies in Germany's solar policy mix," Research Policy, Elsevier, vol. 51(10).
    2. Rogge, Karoline S. & Schleich, Joachim, 2018. "Do policy mix characteristics matter for low-carbon innovation? A survey-based exploration of renewable power generation technologies in Germany," Research Policy, Elsevier, vol. 47(9), pages 1639-1654.
    3. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    4. Costantini, Valeria & Crespi, Francesco & Palma, Alessandro, 2017. "Characterizing the policy mix and its impact on eco-innovation: A patent analysis of energy-efficient technologies," Research Policy, Elsevier, vol. 46(4), pages 799-819.
    5. Valeria Costantini & Francesco Crespi & Alessandro Palma, 2015. "Characterizing the policy mix and its impact on eco-innovation in energy-efficient technologies," SEEDS Working Papers 1115, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jun 2015.
    6. Pinget, Amandine, 2016. "Spécificités des déterminants des innovations environnementales : une approche appliquée aux PME [Specificities of determinants for environmental innovation : an approach applied to SMEs]," MPRA Paper 80108, University Library of Munich, Germany.
    7. Costantini, Valeria & Crespi, Francesco & Paglialunga, Elena & Sforna, Giorgia, 2020. "System transition and structural change processes in the energy efficiency of residential sector: Evidence from EU countries," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 309-329.
    8. Cantner, Uwe & Graf, Holger & Herrmann, Johannes & Kalthaus, Martin, 2016. "Inventor networks in renewable energies: The influence of the policy mix in Germany," Research Policy, Elsevier, vol. 45(6), pages 1165-1184.
    9. Sam Aflaki & Syed Abul Basher & Andrea Masini, 2015. "Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry," Working Papers hal-02011423, HAL.
    10. Amandine Pinget & Rachel Bocquet & Caroline Mothe, 2015. "Barriers to Environmental Innovation in SMEs: Empirical Evidence from French Firms," Post-Print hal-01300837, HAL.
    11. Hille, Erik & Althammer, Wilhelm & Diederich, Henning, 2020. "Environmental regulation and innovation in renewable energy technologies: Does the policy instrument matter?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    12. Grafström, Jonas & Poudineh, Rahmat, 2023. "No evidence of counteracting policy effects on European solar power invention and diffusion," Energy Policy, Elsevier, vol. 172(C).
    13. Joana Costa, 2021. "Carrots or Sticks: Which Policies Matter the Most in Sustainable Resource Management?," Resources, MDPI, vol. 10(2), pages 1-21, February.
    14. Patricia Laurens & Christian Le Bas & Stéphane Lhuillery & Antoine Schoen, 2017. "The determinants of cleaner energy innovations of the world’s largest firms: the impact of firm learning and knowledge capital," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(4), pages 311-333, May.
    15. Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2021. "Firms’ growth, green gazelles and eco-innovation: evidence from a sample of European firms," Small Business Economics, Springer, vol. 56(4), pages 1721-1738, April.
    16. Dewick, Paul & Maytorena-Sanchez, Eunice & Winch, Graham, 2019. "Regulation and regenerative eco-innovation: the case of extracted materials in the UK," Ecological Economics, Elsevier, vol. 160(C), pages 38-51.
    17. Abdelfeteh Bitat, 2018. "Environmental regulation and eco-innovation: the Porter hypothesis refined," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(3), pages 299-321, September.
    18. Francesco Crespi & Claudia Ghisetti & Francesco Quatraro, 2015. "Environmental and innovation policies for the evolution of green technologies: a survey and a test," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 343-370, December.
    19. Paul Lehmann & Patrik Söderholm, 2018. "Can Technology-Specific Deployment Policies Be Cost-Effective? The Case of Renewable Energy Support Schemes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 475-505, October.
    20. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:108:y:2017:i:c:p:26-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.