IDEAS home Printed from https://ideas.repec.org/p/sru/ssewps/2015-07.html
   My bibliography  Save this paper

Exploring the Role of Servitization to Overcome Barriers for Innovative Energy Efficiency Technologies – The Case of Public LED Street Lighting in German Municipalities

Author

Listed:
  • Friedemann Polzin

    (EBS Business School, Strascheg Institute for Innovation and Entrepreneurship (SIIE), Rheingaustr. 1, 65375 Oestrich-Winkel, Germany)

  • Paschen von Flotow

    (Sustainable Business Institute (SBI), Zehnthofstr. 1, 65375 Oestrich-Winkel, Germany)

  • Colin Nolden

    (SPRU, University of Sussex, UK)

Abstract

In this paper we analyse the case for public application of LED street lighting. Drawing from the energy services literature and transaction cost economics, we compare modes of lighting governance for modernisation. We argue that servitization can accelerate the commercialisation and diffusion of end-use energy demand reduction (EUED) technologies in the public sector if third party energy service companies (ESCo) overcome technological, institutional and economic barriers that accompany the introduction of such technologies resulting in transaction costs. This can only succeed with a supportive policy framework and an environment conducive towards the dissemination of specific technological and commercial knowledge required for the diffusion process

Suggested Citation

  • Friedemann Polzin & Paschen von Flotow & Colin Nolden, 2015. "Exploring the Role of Servitization to Overcome Barriers for Innovative Energy Efficiency Technologies – The Case of Public LED Street Lighting in German Municipalities," SPRU Working Paper Series 2015-07, SPRU - Science Policy Research Unit, University of Sussex Business School.
    • Handle: RePEc:sru:ssewps:2015-07
    as

    Download full text from publisher

    File URL: https://www.sussex.ac.uk/webteam/gateway/file.php?name=2015-07-swps-polzin-flotow-nolden-servitisation-led.pdf&site=25
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mills, Bradford & Schleich, Joachim, 2014. "Household transitions to energy efficient lighting," Energy Economics, Elsevier, vol. 46(C), pages 151-160.
    2. Delmas, Magali A, 1999. "Exposing Strategic Assets to Create New Competencies: The Case of Technological Acquisition in the Waste Management Industry in Europe and North America," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 8(4), pages 635-671, December.
    3. Guerzoni, Marco & Raiteri, Emilio, 2015. "Demand-side vs. supply-side technology policies: Hidden treatment and new empirical evidence on the policy mix," Research Policy, Elsevier, vol. 44(3), pages 726-747.
    4. Roehrich, Jens K. & Lewis, Michael A. & George, Gerard, 2014. "Are public–private partnerships a healthy option? A systematic literature review," Social Science & Medicine, Elsevier, vol. 113(C), pages 110-119.
    5. David Popp, 2010. "Innovation and Climate Policy," NBER Working Papers 15673, National Bureau of Economic Research, Inc.
    6. Sorrell, Steve, 2007. "The economics of energy service contracts," Energy Policy, Elsevier, vol. 35(1), pages 507-521, January.
    7. David Popp, 2010. "Innovation and Climate Policy," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 275-298, October.
    8. Timothy J. Foxon & Jonathan Köhler & Christine Oughton (ed.), 2008. "Innovation for a Low Carbon Economy," Books, Edward Elgar Publishing, number 12790.
    9. Anna Bergek & Ksenia Onufrey, 2014. "Is one path enough? Multiple paths and path interaction as an extension of path dependency theory," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(5), pages 1261-1297.
    10. Daan van Soest & Erwin Bulte, 2001. "Does the Energy-Efficiency Paradox Exist? Technological Progress and Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(1), pages 101-112, January.
    11. Sanderson, Susan Walsh & Simons, Kenneth L., 2014. "Light emitting diodes and the lighting revolution: The emergence of a solid-state lighting industry," Research Policy, Elsevier, vol. 43(10), pages 1730-1746.
    12. Herring, Horace, 2006. "Energy efficiency—a critical view," Energy, Elsevier, vol. 31(1), pages 10-20.
    13. Sovacool, Benjamin K., 2009. "The importance of comprehensiveness in renewable electricity and energy-efficiency policy," Energy Policy, Elsevier, vol. 37(4), pages 1529-1541, April.
    14. Bertoldi, Paolo & Rezessy, Silvia & Vine, Edward, 2006. "Energy service companies in European countries: Current status and a strategy to foster their development," Energy Policy, Elsevier, vol. 34(14), pages 1818-1832, September.
    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. Alfonso Gago-Calderón & Manuel Jesús Hermoso-Orzáez & Jose Ramon De Andres-Diaz & Guillermo Redrado-Salvatierra, 2018. "Evaluation of Uniformity and Glare Improvement with Low Energy Efficiency Losses in Street Lighting LED Luminaires Using Laser-Sintered Polyamide-Based Diffuse Covers," Energies, MDPI, vol. 11(4), pages 1-17, April.
    2. Olsthoorn, Mark & Schleich, Joachim & Hirzel, Simon, 2017. "Adoption of Energy Efficiency Measures for Non-residential Buildings: Technological and Organizational Heterogeneity in the Trade, Commerce and Services Sector," Ecological Economics, Elsevier, vol. 136(C), pages 240-254.
    3. Polzin, Friedemann & von Flotow, Paschen & Nolden, Colin, 2016. "What encourages local authorities to engage with energy performance contracting for retrofitting? Evidence from German municipalities," Energy Policy, Elsevier, vol. 94(C), pages 317-330.
    4. Friedemann Polzin & Steve Sorrell & Colin Nolden, 2015. "Innovative Procurement Frameworks for Energy Performance Contracting in the UK Public Sector," SPRU Working Paper Series 2015-31, SPRU - Science Policy Research Unit, University of Sussex Business School.
    5. Julian T. M. Pinto & Manuel E. Morales & Mariia Fedoruk & Marina Kovaleva & Arnaud Diemer, 2019. "Servitization in Support of Sustainable Cities: What Are Steel’s Contributions and Challenges?," Sustainability, MDPI, vol. 11(3), pages 1-18, February.
    6. Daniel Wacinkiewicz & Szymon Słotwiński, 2023. "The Statutory Model of Energy Performance Contracting as a Means of Improving Energy Efficiency in Public Sector Units as Seen in the Example of Polish Legal Policies," Energies, MDPI, vol. 16(13), pages 1-15, June.
    7. Cosme Segador-Vegas & Justo García-Sanz-Calcedo & Daniel Encinas-Martín, 2018. "Determination of the Energy Behaviour in Municipalities with Fewer than 6000 Inhabitants in Badajoz (Spain)," Energies, MDPI, vol. 11(9), pages 1-16, August.

    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. Polzin, Friedemann & von Flotow, Paschen & Nolden, Colin, 2016. "What encourages local authorities to engage with energy performance contracting for retrofitting? Evidence from German municipalities," Energy Policy, Elsevier, vol. 94(C), pages 317-330.
    2. Polzin, Friedemann & Nolden, Colin & von Flotow, Paschen, 2018. "Drivers and barriers for municipal retrofitting activities – Evidence from a large-scale survey of German local authorities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 99-108.
    3. Polzin, Friedemann, 2017. "Mobilizing private finance for low-carbon innovation – A systematic review of barriers and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 525-535.
    4. WenShwo Fang & Stephen M. Miller, 2013. "The effect of ESCO s on carbon dioxide emissions," Applied Economics, Taylor & Francis Journals, vol. 45(34), pages 4796-4804, December.
    5. Giovanni Marin & Francesca Lotti, 2017. "Productivity effects of eco-innovations using data on eco-patents," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(1), pages 125-148.
    6. Antonioli, Davide & Mazzanti, Massimiliano, 2017. "Towards a green economy through innovations: The role of trade union involvement," Ecological Economics, Elsevier, vol. 131(C), pages 286-299.
    7. Schleich, Joachim & Gassmann, Xavier & Faure, Corinne & Meissner, Thomas, 2016. "Making the implicit explicit: A look inside the implicit discount rate," Energy Policy, Elsevier, vol. 97(C), pages 321-331.
    8. Pedro Linares & Xavier Labandeira, 2010. "Energy Efficiency: Economics And Policy," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 573-592, July.
    9. Martin Larsson, 2017. "EU Emissions Trading: Policy-Induced Innovation, or Business as Usual? Findings from Company Case Studies in the Republic of Croatia," Working Papers 1705, The Institute of Economics, Zagreb.
    10. Nemet, Gregory F. & Baker, Erin & Jenni, Karen E., 2013. "Modeling the future costs of carbon capture using experts' elicited probabilities under policy scenarios," Energy, Elsevier, vol. 56(C), pages 218-228.
    11. 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.
    12. Galloway, Emily & Johnson, Erik Paul, 2016. "Teaching an old dog new tricks: Firm learning from environmental regulation," Energy Economics, Elsevier, vol. 59(C), pages 1-10.
    13. Lu, Zhijian & Shao, Shuai, 2016. "Impacts of government subsidies on pricing and performance level choice in Energy Performance Contracting: A two-step optimal decision model," Applied Energy, Elsevier, vol. 184(C), pages 1176-1183.
    14. Nolden, Colin & Sorrell, Steve & Polzin, Friedemann, 2016. "Catalysing the energy service market: The role of intermediaries," Energy Policy, Elsevier, vol. 98(C), pages 420-430.
    15. Huseynov, Samir & Palma, Marco A., 2018. "Does California’s LCFS Reduce CO2 Emissions?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274200, Agricultural and Applied Economics Association.
    16. Monjurul Hasan, A S M & Trianni, Andrea & Shukla, Nagesh & Katic, Mile, 2022. "A novel characterization based framework to incorporate industrial energy management services," Applied Energy, Elsevier, vol. 313(C).
    17. Jang-Hwan Jo & Tae Woo Roh & Seonghoon Kim & Yeo-Chang Youn & Mi Sun Park & Ki Joo Han & Eun Kyung Jang, 2015. "Eco-Innovation for Sustainability: Evidence from 49 Countries in Asia and Europe," Sustainability, MDPI, vol. 7(12), pages 1-16, December.
    18. Shengmin Tan & Xu Wang & Chuanwen Jiang, 2019. "Privacy-Preserving Energy Scheduling for ESCOs Based on Energy Blockchain Network," Energies, MDPI, vol. 12(8), pages 1-16, April.
    19. Emanuele Campiglio & Alessandro Spiganti & Anthony Wiskich, 2023. "Clean innovation and heterogeneous financing costs," Working Papers 2023: 07, Department of Economics, University of Venice "Ca' Foscari".
    20. Christian Haas & Karol Kempa, 2023. "Low-Carbon Investment and Credit Rationing," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(1), pages 109-145, October.

    More about this item

    Keywords

    energy efficiency; public policy; servitization; contracting; ESCo; modes of governance; LED; lighting;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:sru:ssewps:2015-07. 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: University of Sussex Business School Communications Team (email available below). General contact details of provider: https://edirc.repec.org/data/spessuk.html .

    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.