Are renewable energy policies effective to promote technological change? The role of induced technological risk

被引：0

作者：

Ye, Fanglin ^{[1
,2
]}

Paulson, Nicholas ^{[3
]}

Khanna, Madhu ^{[3
]}

机构：

[1] Tianjin University of Finance and Economics, Tianjin,300222, China

[2] School of Vehicle and Mobility, Tsinghua University, Beijing,100084, China

[3] Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, Urbana,IL,61801, United States

来源：

Journal of Environmental Economics and Management | 2022年 / 114卷

关键词：

Adopted technology - Induced technological risk - Price vs. - Quantity - Real Options - Renewable energy investments - Renewable energy policy - Side effect - Technological change - Technological risk;

D O I：

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学科分类号：

摘要：

This study shows that renewable energy policies have an important side effect of inducing technological risk that makes firms' already-adopted technologies become uncompetitive more quickly. This induced risk irrevocably reduces firms' incentives to develop and adopt new technologies, thus undermining policy effectiveness to promote technological change. We find that the quantity-based renewable energy standard is more effective than the R&D or price subsidy to maintain firms' innovation and investment incentives under the induced-risk effect. This effectiveness advantage further influences policy choices between the price-based and quantity-based policy instruments, and provides a bias in favor of a quantity instrument in Weitzman's criterion. © 2022 Elsevier Inc.

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