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Renewables and innovation: did policy induced structural change in the energy sector effect innovation in green technologies?

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  • Leo Urban Wangler

Abstract

This study analyses the structural change in the energy system. By focusing on different green technology industries in Germany, it is of particular interest how policy-induced demand stimulates innovation. Taking the market size as well as the change in the market size as a proxy for increasing demand and patent counts as a proxy for innovation, there is support that the presence of institutions enabling diffusion of green technologies (GTs) is correlated with innovative activity. However, when the different GTs are treated separately remarkable differences can be observed. We also investigate the role of public expenditures for research and development. It is controlled for a structural break by comparing the two institutional settings incorporated into the legal system in Germany, namely the Electricity Feed Law and the Renewable Energy Sources Act. We find evidence for the role of public expenditures for research and development, and no evidence is found for the structural break.

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  • Leo Urban Wangler, 2013. "Renewables and innovation: did policy induced structural change in the energy sector effect innovation in green technologies?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 56(2), pages 211-237, March.
    • Handle: RePEc:taf:jenpmg:v:56:y:2013:i:2:p:211-237
    DOI: 10.1080/09640568.2012.662464
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    1. Zvi Griliches, 1998. "R&D and Productivity: The Econometric Evidence," NBER Books, National Bureau of Economic Research, Inc, number gril98-1.
    2. Hélène Dernis & Mosahid Khan, 2004. "Triadic Patent Families Methodology," OECD Science, Technology and Industry Working Papers 2004/2, OECD Publishing.
    3. Griliches, Zvi, 1998. "R&D and Productivity," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226308869.
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    Cited by:

    1. María Teresa Costa‐Campi & Néstor Duch‐Brown & José García‐Quevedo, 2019. "Innovation strategies of energy firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(5), pages 1073-1085, September.
    2. 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).
    3. 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.
    4. Jamasb, Tooraj & Pollitt, Michael G., 2015. "Why and how to subsidise energy R+D: Lessons from the collapse and recovery of electricity innovation in the UK," Energy Policy, Elsevier, vol. 83(C), pages 197-205.
    5. Martin Kalthaus, 2020. "Knowledge recombination along the technology life cycle," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 643-704, July.
    6. Bosch, Stephan & Schmidt, Matthias, 2019. "Is the post-fossil era necessarily post-capitalistic? – The robustness and capabilities of green capitalism," Ecological Economics, Elsevier, vol. 161(C), pages 270-279.
    7. Pitelis, Alkis & Vasilakos, Nicholas & Chalvatzis, Konstantinos, 2020. "Fostering innovation in renewable energy technologies: Choice of policy instruments and effectiveness," Renewable Energy, Elsevier, vol. 151(C), pages 1163-1172.
    8. Stephan Bosch & Matthias Schmidt, 2019. "Auswirkungen neuer Energiesysteme auf die wirtschaftliche Entwicklung – Möglichkeiten eines grünen Kapitalismus [Economic development within renewable energy systems – Opportunities for green capit," Sustainability Nexus Forum, Springer, vol. 27(2), pages 95-111, June.
    9. Samant, Shantala & Thakur-Wernz, Pooja & Hatfield, Donald E., 2020. "Does the focus of renewable energy policy impact the nature of innovation? Evidence from emerging economies," Energy Policy, Elsevier, vol. 137(C).
    10. Graf, Holger & Kalthaus, Martin, 2018. "International research networks: Determinants of country embeddedness," Research Policy, Elsevier, vol. 47(7), pages 1198-1214.
    11. Brutschin, Elina & Fleig, Andreas, 2016. "Innovation in the energy sector – The role of fossil fuels and developing economies," Energy Policy, Elsevier, vol. 97(C), pages 27-38.
    12. uit het Broek, Michiel A.J. & Veldman, Jasper & Fazi, Stefano & Greijdanus, Roy, 2019. "Evaluating resource sharing for offshore wind farm maintenance: The case of jack-up vessels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 619-632.
    13. Roxana Voicu-Dorobanțu & Clara Volintiru & Maria-Floriana Popescu & Vlad Nerău & George Ștefan, 2021. "Tackling Complexity of the Just Transition in the EU: Evidence from Romania," Energies, MDPI, vol. 14(5), pages 1-22, March.
    14. Bruns, Stephan B. & Kalthaus, Martin, 2020. "Flexibility in the selection of patent counts: Implications for p-hacking and evidence-based policymaking," Research Policy, Elsevier, vol. 49(1).
    15. Zhang, Dan & Zheng, Mingbo & Feng, Gen-Fu & Chang, Chun-Ping, 2022. "Does an environmental policy bring to green innovation in renewable energy?," Renewable Energy, Elsevier, vol. 195(C), pages 1113-1124.
    16. Zheng-Xia He & Shi-Chun Xu & Qin-Bin Li & Bin Zhao, 2018. "Factors That Influence Renewable Energy Technological Innovation in China: A Dynamic Panel Approach," Sustainability, MDPI, vol. 10(1), pages 1-30, January.

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