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dc.contributor.authorGrubb, Michael
dc.contributor.authorDrummond, Paul
dc.contributor.authorPoncia, Alexandra
dc.contributor.authorMcDowall, Will
dc.contributor.authorPopp, David
dc.contributor.authorSamadi, Sascha
dc.contributor.authorPenasco, Cristina
dc.contributor.authorGillingham, Kenneth T
dc.contributor.authorSmulders, Sjak
dc.contributor.authorGlachant, Matthieu
dc.contributor.authorHassall, Gavin
dc.contributor.authorMizuno, Emi
dc.contributor.authorRubin, Edward S
dc.contributor.authorDechezleprêtre, Antoine
dc.contributor.authorPavan, Giulia
dc.date.accessioned2021-03-29T12:16:29Z
dc.date.available2021-03-29T12:16:29Z
dc.date.issued2021-03-29
dc.date.submitted2019-01-31
dc.identifier.othererlabde07
dc.identifier.otherabde07
dc.identifier.othererl-109249.r2
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/319308
dc.description.abstractAbstract: We conduct a systematic and interdisciplinary review of empirical literature assessing evidence on induced innovation in energy and related technologies. We explore links between demand-drivers (both market-wide and targeted); indicators of innovation (principally, patents); and outcomes (cost reduction, efficiency, and multi-sector/macro consequences). We build on existing reviews in different fields and assess over 200 papers containing original data analysis. Papers linking drivers to patents, and indicators of cumulative capacity to cost reductions (experience curves), dominate the literature. The former does not directly link patents to outcomes; the latter does not directly test for the causal impact of on cost reductions. Diverse other literatures provide additional evidence concerning the links between deployment, innovation activities, and outcomes. We derive three main conclusions. (a) Demand-pull forces enhance patenting; econometric studies find positive impacts in industry, electricity and transport sectors in all but a few specific cases. This applies to all drivers—general energy prices, carbon prices, and targeted interventions that build markets. (b) Technology costs decline with cumulative investment for almost every technology studied across all time periods, when controlled for other factors. Numerous lines of evidence point to dominant causality from at-scale deployment (prior to self-sustaining diffusion) to cost reduction in this relationship. (c) Overall innovation is cumulative, multi-faceted, and self-reinforcing in its direction (path-dependent). We conclude with brief observations on implications for modelling and policy. In interpreting these results, we suggest distinguishing the economics of active deployment, from more passive diffusion processes, and draw the following implications. There is a role for policy diversity and experimentation, with evaluation of potential gains from innovation in the broadest sense. Consequently, endogenising innovation in large-scale models is important for deriving policy-relevant conclusions. Finally, seeking to relate quantitative economic evaluation to the qualitative socio-technical transitions literatures could be a fruitful area for future research.
dc.languageen
dc.publisherIOP Publishing
dc.subjectTopical Review
dc.subjectFocus on Evidence Synthesis for Climate Solutions
dc.subjectenergy innovation
dc.subjectendogenous technological change
dc.subjectlearning by doing
dc.subjectinduced innovation
dc.subjectCO2 mitigation costs
dc.subjectinnovation policy
dc.subjectdirected technological change
dc.titleInduced innovation in energy technologies and systems: a review of evidence and potential implications for CO 2 mitigation
dc.typeArticle
dc.date.updated2021-03-29T12:16:29Z
prism.issueIdentifier4
prism.publicationNameEnvironmental Research Letters
prism.volume16
dc.identifier.doi10.17863/CAM.66430
dcterms.dateAccepted2021-01-20
rioxxterms.versionofrecord10.1088/1748-9326/abde07
rioxxterms.versionVoR
rioxxterms.licenseref.urihttp://creativecommons.org/licenses/by/3.0
dc.contributor.orcidGrubb, Michael [0000-0003-2393-3041]
dc.contributor.orcidDrummond, Paul [0000-0002-6921-0474]
dc.contributor.orcidMcDowall, Will [0000-0002-4238-0692]
dc.contributor.orcidSamadi, Sascha [0000-0002-4939-2872]
dc.contributor.orcidPenasco, Cristina [0000-0003-1187-5358]
dc.contributor.orcidGillingham, Kenneth T [0000-0002-7329-2660]
dc.contributor.orcidSmulders, Sjak [0000-0003-3753-6469]
dc.contributor.orcidGlachant, Matthieu [0000-0003-1765-9998]
dc.contributor.orcidRubin, Edward S [0000-0003-3374-1553]
dc.contributor.orcidDechezleprêtre, Antoine [0000-0003-2477-816X]
dc.identifier.eissn1748-9326
pubs.funder-project-idInstitute for New Economic Thinking (Grant ID #INO19-00004)


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