Clean Energy Technology and the Role of Non-Carbon Price-Based Policy: An Evolutionary Economics Perspective

Abstract

Much academic attention has been paid to the role of carbon pricing in developing a market-led response to low-carbon energy innovation. Taking an evolutionary economics perspective, this paper makes the case as to why price mechanisms alone are insufficient to support new energy technologies coming to market. In doing so, we set out the unique investment barriers in the clean energy space. For guidance on possible approaches to non-carbon price-based policies that seek to tackle these barriers, we turn to case studies from Asia, a region which has experienced a strong uptake in climate policy in recent years.

Acknowledgements

This paper has benefited significantly from the input and advice of several people, in particular I would like to thank Drs Eric Knight and Dariusz Wójcik, Professor Gordon Clark and David Imbert for their helpful input and advice – all work remains the sole responsibility of the author and the usual disclaimer applies.

Notes

See World Resources Institute website, http://projects.wri.org/taxonomy/term/8?page=3.

Further details on the structuring of publicly backed guarantees are available in the SEFI Alliance Report ‘Publicly Backed Guarantees as Policy Instruments to Promote Clean Energy’.

See Renewable Energy World website, http://www.renewableenergyworld.com/rea/news/print/article/2009/09/renewables-global-status-report-2009-update.