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Public policy and financial resource mobilization for wind energy in developing countries: A comparison of approaches and outcomes in China and India

Accepted version
Peer-reviewed

Type

Article

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Authors

Surana, Kavita 
Anadon, Laura Diaz 

Abstract

We analyze and contrast how China and India mobilized financial resources to build domestic technological innovation systems in wind energy. To that end, we identify distinct stages of technology diffusion in the two countries in the period 1986–2012, and analyze the interplay between public policies and the development of the technological innovation system across the different stages. We show that the two countries’ distinct development strategies for wind energy – China developed wind energy largely through its state-owned enterprises, while India opened up wind energy investment to the private sector in the early 1990s – influenced system outcomes in terms of technology diffusion, domestic industry structure, competitiveness, and ownership. By unraveling the interplay between public policies, investment risks and returns, and actor characteristics, we explain the differences in system outcomes and identify important policy trade-offs between the two strategies. Our analysis provides novel insights about the process of financial resource mobilization in technological innovation systems, the dynamics of innovation-system growth, and the policy trade-offs that must be reconciled by countries that aim to promote the diffusion of a particular technology.

Description

Keywords

35 Commerce, Management, Tourism and Services, 38 Economics, 44 Human Society, 4404 Development Studies, 4407 Policy and Administration, 7 Affordable and Clean Energy

Journal Title

Global Environmental Change

Conference Name

Journal ISSN

0959-3780

Volume Title

35

Publisher

Elsevier BV