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Addressing Barriers to Low-Carbon Innovation

Essays on Structures and Policies to Mobilise Private Finance

by Friedemann Polzin (Author)
©2016 Thesis 192 Pages
Series: Finanzmärkte und Klimawandel, Volume 7

Summary

The author analyses how finance flows can be guided towards low-carbon value generation and growth. He investigates the arrangements between actors in the innovation system and policy measures such as technology push, demand-pull and regulation with regard to their influence on private investments. The case studies include innovation intermediaries, energy service contracting for LED lighting and renewable energy project finance. The results show that barriers to low-carbon innovation inhibit the financing for companies, projects and infrastructure. Also, transparent structures which focus on risk and return facilitate private investments and, finally, both science, technology and innovation policies and regulation are needed to spur private finance.

Table Of Contents

  • Cover
  • Title
  • Copyright
  • About the author(s)/editor(s)
  • About the book
  • This eBook can be cited
  • Acknowledgements
  • Table of Contents
  • List of figures
  • List of tables
  • List of abbreviations
  • 1 Introduction
  • 1.1 Motivation, purpose and scope of the research
  • 1.2 Theoretical background and research context
  • 1.3 Research questions and methodologies
  • 2 Barriers to low-carbon innovation and policy responses in innovation studies literature
  • 2.1 Introduction
  • 2.2 Methodology
  • 2.2.1 Research approach
  • 2.2.2 Developing an analytical framework for the literature review
  • 2.3 Barriers to low-carbon innovation along the innovation cycle
  • 2.3.1 Technological barriers
  • 2.3.2 Institutional barriers
  • 2.3.3 Economic barriers
  • 2.3.4 Financial barriers
  • 2.3.5 Political barriers
  • 2.3.6 Interaction and capability barriers
  • 2.3.7 Transformation barriers
  • 2.4 Policy approaches to address the barriers
  • 2.4.1 Active technology policy
  • 2.4.2 Institutional support
  • 2.4.3 Fixing market failures and market creation
  • 2.4.4 Mobilise public and private investment
  • 2.4.5 Interactive and reflexive policy design
  • 2.4.6 Fostering interaction, increasing knowledge and learning
  • 2.4.7 Facilitate transformation
  • 2.5 Barriers to low-carbon innovation and policy responses
  • 2.5.1 Discussion
  • 2.5.2 Avenues for future research
  • 2.6 Conclusion and policy implications
  • 3 Accelerating the cleantech revolution: Exploring the financial mobilisation functions of institutional innovation intermediaries
  • 3.1 Introduction
  • 3.2 Theoretical background
  • 3.2.1 Financing of R&D and innovation
  • 3.2.2 The role of intermediaries in addressing (financial) barriers
  • 3.2.3 Research question and research gap
  • 3.3 Methods and data
  • 3.3.1 Research context
  • 3.3.2 Sample
  • 3.3.3 Data collection
  • 3.3.4 Data analysis
  • 3.4 Results
  • 3.4.1 An intermediaries’ perspective on the relation between financial barriers and other barriers to (low-carbon) innovation
  • 3.4.2 Role of institutional intermediaries in addressing these barriers
  • 3.5 Discussion and conclusions
  • 3.5.1 Addressing financial barriers requires a holistic perspective
  • 3.5.2 Exploring the financial mobilisation functions of (institutional) innovation intermediaries
  • 3.5.3 The synergic role of financial mobilisation intermediation with other intermediation functions
  • 3.6 Conclusion and implications for research and policy
  • 4 Exploring the role of ESCOs to overcome barriers for innovative energy demand reduction technologies – the case of public LED street lighting in German municipalities
  • 4.1 Introduction
  • 4.2 Theoretical background
  • 4.2.1 Challenges facing adoption of novel end-use energy demand technologies
  • 4.2.2 ESCO solutions for the diffusion of end-use energy demand technologies
  • 4.2.3 Research gaps identified in the literature
  • 4.2.4 Analytical Framework: Transaction cost economics
  • 4.3 Methods and data
  • 4.3.1 Case study: LED street lighting and ESCO solutions in German municipalities
  • 4.3.2 Data Collection
  • 4.3.3 Data Analysis
  • 4.4 Results: Factors affecting the diffusion of LED street lighting and EPC
  • 4.4.1 Technological factors
  • 4.4.2 Competency and capacity factors
  • 4.4.3 Institutional factors
  • 4.4.4 Economic / investment factors
  • 4.5 Discussion
  • 4.5.1 Factors affecting the diffusion of LED street lighting and associated services
  • 4.5.2 Modes of governance for novel end-use energy demand technologies
  • 4.5.3 Using TCE for the analysis of ESCO solutions
  • 4.6 Conclusions and implications
  • 4.6.1 Conclusions
  • 4.6.2 Implications for policy makers and managers
  • 4.6.3 Limitations and future research
  • 5 Public policy influence on renewable energy investments – a panel data study across OECD countries
  • 5.1 Introduction
  • 5.2 Theoretical background
  • 5.2.1 Public policy influence on renewable energy deployment
  • 5.2.2 Investors’ perspective on renewable energies
  • 5.3 Methods and data
  • 5.3.1 Research design
  • 5.3.2 Data
  • 5.3.3 Model
  • 5.3.4 Longitudinal analysis (panel data regression)
  • 5.4 Results and discussion
  • 5.4.1 Fiscal and financial incentives
  • 5.4.2 Market-based incentives
  • 5.4.3 Direct investments
  • 5.4.4 Policy support
  • 5.4.5 Regulatory instruments
  • 5.4.6 Robustness checks
  • 5.5 Conclusions and policy implications
  • 6 Conclusions and implications
  • 6.1 Conclusions
  • 6.1.1 Barriers to low-carbon innovation inhibit the financing for companies, projects and infrastructure
  • 6.1.2 Transparent structures which focus on risk and return facilitate private investments into clean technologies along the innovation cycle
  • 6.1.3 Science, technology and innovation (STI) policies and regulation are needed to spur private investments into clean technologies
  • 6.2 Implications for research and policy makers
  • 6.2.1 Implications for research
  • 6.2.2 Implications for policy makers
  • 6.3 Limitations
  • 6.4 Future research
  • 7 References
  • 8 Appendix
  • 8.1 Appendix for chapter 3
  • 8.1.1 Supplementary data (i.e. organised quotes)
  • 8.1.2 Interview guide
  • 8.2 Appendix for chapter 4
  • 8.2.1 Interview guide
  • 8.2.2 Interview participants
  • 8.3 Appendix for chapter 5
  • 8.3.1 Case selection
  • 8.3.2 Summary statistics
  • 8.3.3 Robustness checks

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List of figures

Figure 1-1: Stylised innovation cycle for clean technologies

Figure 1-2: Structure of this thesis

Figure 2-1: Literature streams and main concepts

Figure 2-2: Barriers to commercialisation and diffusion of eco-innovation

Figure 2-3: Policy responses to accelerate commercialisation and diffusion of eco-innovation

Figure 3-1: Position of the intermediaries and unit of analysis (research setting)

Figure 3-2: Model for intermediaries to address barriers to (low-carbon) innovation

Figure 4-1: Spectrum of governance structures

Figure 4-2: Overview about actors and modes of lighting governance

Figure 5-1: Renewable power capacity investment compared to fossil-fuel power capacity investment, 2008–2013 in billion USD

Figure 5-2: Model for the quantitative panel regression

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List of tables

Table 1-1: Overview about journal articles as chapters in this thesis

Table 2-1: Selected avenues for future research

Table 3-1: Overview of barriers to innovation and financing instruments

Table 3-2: Overview of policy instruments for financing innovation (implemented by intermediaries)

Table 3-3: R&D partnerships and interviewees

Table 3-4: Qualitative interview coding scheme and category emergence

Table 3-5: Financial mobilisation functions and corresponding instruments

Table 4-1: Overview of characteristics and behaviours that can affect transaction costs (TC)

Table 4-2: Spectrum of governance structures for municipal street lighting in Germany

Table 4-3: TCE perspective – Factors affecting the governance of novel EUEDs

Table 5-1: Specification tests for the quantitative model

Table 5-2: Panel-corrected standard errors (PCSE) regression results

Table 5-3: Ordinary least square (OLS) regression results

Table 5-4: Overview of the results

Table 8-1: Representative quotes for barriers, roles and functions of the intermediaries

Table 8-2: Sample of lighting and ESCo market actors

Table 8-3: Country selection for the quantitative analysis

Table 8-4: Data – definition, sources and descriptive statistics

Table 8-5: Pairwise correlation coefficients (Multiple RE / aggregated sectors)

Table 8-6: Random effects estimator (REE) regression results

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List of abbreviations

Details

Pages
192
Year
2016
ISBN (PDF)
9783653061161
ISBN (ePUB)
9783653954517
ISBN (MOBI)
9783653954500
ISBN (Softcover)
9783631669815
DOI
10.3726/978-3-653-06116-1
Language
English
Publication date
2015 (October)
Keywords
Barrieren für Umweltinnovationen Finanzierung von Innovationen Innovationspolitik Erneuerbare Energien
Published
Frankfurt am Main, Berlin, Bern, Bruxelles, New York, Oxford, Wien, 2015. 192 pp., 11 b/w fig., 20 tables

Biographical notes

Friedemann Polzin (Author)

Friedemann Polzin researches the financing of eco-innovation and entrepreneurship for a transition towards a green economy to derive policy and managerial implications. He gained broad experience in research, implementation and consulting. His work has been awarded with multiple awards.

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194 pages