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Energy innovation funding and institutions in major economies

Author

Listed:
  • Jonas Meckling

    (University of California, Berkeley)

  • Clara Galeazzi

    (Harvard University
    University of Cambridge)

  • Esther Shears

    (University of California, Berkeley
    University of Bologna)

  • Tong Xu

    (University of Cambridge
    Chinese Academy of Sciences)

  • Laura Diaz Anadon

    (Harvard University
    University of Cambridge)

Abstract

Accelerating energy innovation for decarbonization hinges on public investment in research, development and demonstration (RD&D). Here we examine the evolution and variation of public energy RD&D funding and institutions and associated drivers across eight major economies, including China and India (2000–2018). The share of new clean energy grew at the expense of nuclear, while the fossil fuel RD&D share remained stable. Governments created new institutions but experimented only marginally with novel designs that bridge lab to market to accelerate commercialization. In theory, crisis, cooperation and competition can be drivers of change. We find that cooperation in Mission Innovation is associated with punctuated change in clean-energy RD&D growth, and clean tech competition with China is associated with gradual change. Stimulus spending after the financial crisis, instead, boosted fossil and nuclear only. Looking ahead, global coopetition—the interplay of RD&D cooperation and clean tech competition—offers opportunities for accelerating energy innovation to meet climate goals.

Suggested Citation

  • Jonas Meckling & Clara Galeazzi & Esther Shears & Tong Xu & Laura Diaz Anadon, 2022. "Energy innovation funding and institutions in major economies," Nature Energy, Nature, vol. 7(9), pages 876-885, September.
    • Handle: RePEc:nat:natene:v:7:y:2022:i:9:d:10.1038_s41560-022-01117-3
    DOI: 10.1038/s41560-022-01117-3
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    References listed on IDEAS

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    2. Olivia Coldrey & Paul Lant & Peta Ashworth, 2023. "Elucidating Finance Gaps through the Clean Cooking Value Chain," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    3. Hosan, Shahadat & Sen, Kanchan Kumar & Rahman, Md Matiar & Chapman, Andrew J. & Karmaker, Shamal Chandra & Alam, Mohammad Jahangir & Saha, Bidyut Baran, 2024. "Energy innovation funding and social equity: Mediating role of just energy transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 197(C).
    4. Svetlana Ratner & Konstantin Gomonov & Svetlana Revinova, 2023. "Public Funding for Energy Innovation and Decarbonization Goals: A Coherence Challenge," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 40-45, July.
    5. Sinha, Avik & Tiwari, Sunil & Saha, Tanaya, 2024. "Modeling the behavior of renewable energy market: Understanding the moderation of climate risk factors," Energy Economics, Elsevier, vol. 130(C).
    6. Caglar, Abdullah Emre & Daştan, Muhammet & Avci, Salih Bortecine, 2024. "Persistence of disaggregate energy RD&D expenditures in top-five economies: Evidence from artificial neural network approach," Applied Energy, Elsevier, vol. 365(C).

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