IDEAS home Printed from https://ideas.repec.org/a/spr/envpol/v17y2015i2p299-312.html
   My bibliography  Save this article

A model-based assessment of first-mover advantage and climate policy

Author

Listed:
  • Hector Pollitt
  • Philip Summerton
  • Ger Klaassen

Abstract

This paper provides a model-based macroeconomic assessment of First-Mover Advantage (FMA) in environmental technologies, in which a European sector becomes world leader and captures the global market for a particular technology. The E3MG model is used to assess a set of scenarios where the FMA is established in a range of renewable technologies. Although to some extent dependent on scenario assumptions, the model results show that FMA could provide a small but noticeable boost to European GDP (of some 0.5 %) and employment, which could go some way to countering possible losses in production from implementing ambitious climate policy. The impacts are found to be temporary in nature, but some of the sectors that benefit the most are also those that could be expected to lose out from higher energy prices. Copyright Springer 2015

Suggested Citation

  • Hector Pollitt & Philip Summerton & Ger Klaassen, 2015. "A model-based assessment of first-mover advantage and climate policy," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(2), pages 299-312, April.
    • Handle: RePEc:spr:envpol:v:17:y:2015:i:2:p:299-312
    DOI: 10.1007/s10018-014-0098-6
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10018-014-0098-6
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10018-014-0098-6?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. G. Klaassen & J. Nill & T. Van Ierland & B. Saveyn & S. Vergote, 2012. "Costs and Benefits of Reducing the EU’s Greenhouse Gas Emissions by 30% in 2020," Review of Business and Economic Literature, Intersentia, vol. 57(2), pages 157-179, June.
    2. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    3. Tol, Richard S.J., 2009. "Intra- and extra-union flexibility in meeting the European Union's emission reduction targets," Energy Policy, Elsevier, vol. 37(11), pages 4329-4336, November.
    4. J. Delbeke & G. Klaassen & T. van Ierland & P. Zapfel, 2010. "The Role of Environmental Economics in Recent Policy Making at the European Commission," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 24-43, Winter.
    5. Terry Barker and S. Serban Scrieciu, 2010. "Modeling Low Climate Stabilization with E3MG: Towards a 'New Economics' Approach to Simulating Energy-Environment-Economy System Dynamics," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    6. G. Klaassen & J. Nill & T. Van Ierland & B. Saveyn & S. Vergote, 2012. "Costs and Benefits of Reducing the EU’s Greenhouse Gas Emissions by 30% in 2020," Review of Business and Economic Literature, Intersentia, vol. 57(2), pages 157-179, June.
    7. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2005. "A tale of two market failures: Technology and environmental policy," Ecological Economics, Elsevier, vol. 54(2-3), pages 164-174, August.
    8. Patrik Söderholm & Ger Klaassen, 2007. "Wind Power in Europe: A Simultaneous Innovation–Diffusion Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(2), pages 163-190, February.
    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. Paul Lehmann & Jos Sijm & Erik Gawel & Sebastian Strunz & Unnada Chewpreecha & Jean-Francois Mercure & Hector Pollitt, 2019. "Addressing multiple externalities from electricity generation: a case for EU renewable energy policy beyond 2020?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 255-283, April.

    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. Söderholm, Patrik & Pettersson, Maria, 2011. "Offshore wind power policy and planning in Sweden," Energy Policy, Elsevier, vol. 39(2), pages 518-525, February.
    2. ZhongXiang Zhang, 2016. "Making the Transition to a Low-Carbon Economy: The Key Challenges for China," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 3(2), pages 187-202, May.
    3. Pettersson, Fredrik, 2007. "Carbon pricing and the diffusion of renewable power generation in Eastern Europe: A linear programming approach," Energy Policy, Elsevier, vol. 35(4), pages 2412-2425, April.
    4. Gregory F. Nemet and Adam R. Brandt, 2012. "Willingness to Pay for a Climate Backstop: Liquid Fuel Producers and Direct CO2 Air Capture," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    5. Thomas Sadler, 2013. "Carbon Capture and a Commercial Market for CO 2," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(2), pages 189-200, May.
    6. Sijm, Jos & Lehmann, Paul & Chewpreecha, Unnada & Gawel, Erik & Mercure, Jean-Francois & Pollitt, Hector & Strunz, Sebastian, 2014. "EU climate and energy policy beyond 2020: Are additional targets and instruments for renewables economically reasonable?," UFZ Discussion Papers 3/2014, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    7. Kyunam Kim & Eunnyeong Heo & Yeonbae Kim, 2017. "Dynamic Policy Impacts on a Technological-Change System of Renewable Energy: An Empirical Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(2), pages 205-236, February.
    8. Lehmann, Paul, 2013. "Supplementing an emissions tax by a feed-in tariff for renewable electricity to address learning spillovers," Energy Policy, Elsevier, vol. 61(C), pages 635-641.
    9. Tilmann Rave & Ursula Triebswetter & Johann Wackerbauer, 2013. "Koordination von Innovations-, Energie- und Umweltpolitik," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    10. Tian Tang & David Popp, 2014. "The Learning Process and Technological Change in Wind Power: Evidence from China's CDM Wind Projects," NBER Working Papers 19921, National Bureau of Economic Research, Inc.
    11. Tian Tang & David Popp, 2014. "The Learning Process and Technological Change in Wind Power: Evidence from China's CDM Wind Projects," CESifo Working Paper Series 4705, CESifo.
    12. Lehmann, Paul & Gawel, Erik, 2013. "Why should support schemes for renewable electricity complement the EU emissions trading scheme?," Energy Policy, Elsevier, vol. 52(C), pages 597-607.
    13. Zhang, ZhongXiang, "undated". "Making China the transition to a low-carbon economy: Key challenges and responses," Working Papers 249516, Australian National University, Centre for Climate Economics & Policy.
    14. Lindman, Åsa & Söderholm, Patrik, 2016. "Wind energy and green economy in Europe: Measuring policy-induced innovation using patent data," Applied Energy, Elsevier, vol. 179(C), pages 1351-1359.
    15. Sung, Bongsuk & Song, Woo-Yong, 2013. "Causality between public policies and exports of renewable energy technologies," Energy Policy, Elsevier, vol. 55(C), pages 95-104.
    16. Sung, Bongsuk, 2015. "Public policy supports and export performance of bioenergy technologies: A dynamic panel approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 477-495.
    17. Popp, David & Newell, Richard G. & Jaffe, Adam B., 2010. "Energy, the Environment, and Technological Change," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 873-937, Elsevier.
    18. Capros, Pantelis & Mantzos, Leonidas & Parousos, Leonidas & Tasios, Nikolaos & Klaassen, Ger & Van Ierland, Tom, 2011. "Analysis of the EU policy package on climate change and renewables," Energy Policy, Elsevier, vol. 39(3), pages 1476-1485, March.
    19. Bergek, Anna & Berggren, Christian, 2014. "The impact of environmental policy instruments on innovation: A review of energy and automotive industry studies," Ecological Economics, Elsevier, vol. 106(C), pages 112-123.
    20. Corsatea, Teodora Diana & Giaccaria, Sergio & Arántegui, Roberto Lacal, 2014. "The role of sources of finance on the development of wind technology," Renewable Energy, Elsevier, vol. 66(C), pages 140-149.

    More about this item

    Keywords

    Employment; Innovation; Economic growth; Climate policy; EU; Q43; Q52; Q58;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    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:spr:envpol:v:17:y:2015:i:2:p:299-312. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.