This paper studies the effect of climate change mitigating policies on innovation in clean energy technologies. Results suggest that the tightening of environmental policies since the early 1990s have made a statistically and economically significant contribution to the increase in clean innovation. These effects generally materialized quickly, within 2 to 3 years of the policy change, and were driven by individually significant marginal effects of both market-based policies – such as feed-in tariffs and trading schemes – as well as non-market policies, such as R&D subsidies or emission limits. Looking at electricity innovation in particular, the paper finds that the estimated effect on total innovation is positive on net, meaning that increased innovation in clean and grey technologies is not offset by a decrease in innovation in dirty technologies. From a policy point of view, the paper’s results call for strong policy efforts to decisively shift innovation towards clean technologies.
Jordan’s initiatives to reduce its energy dependency could have substantial macroeconomic
implications, but will crucially depend on the level of international oil prices in the next
decade. Significant uncertainties remain regarding the feasibility of the initiatives and their
potential fiscal costs, including from contingent liabilities, could be very large. Given the
lead time required for such major investments, work should start now on: (i) conducting
comprehensive cost-benefits analysis of these projects; (ii) addressing the challenges arising
from the taxation of natural resources; and (iii) designing a fiscal framework to anchor fiscal
policies if revenue from these energy projects materializes.
This paper discusses structure, impact, costs, and efficiency of renewable energy supply in the eight largest advanced economies (the G-7 plus Spain), with focus on Germany. Renewables production costs are compared to benefits, defined as reductions in net carbon emissions; technological innovation, and increased energy security. The latter part of the paper centers on Germany, the main European producer of non-traditional renewables. We question whether the level of subsidies can be justified, relative to other means to increase energy security and reduce carbon emissions. We also find an excessive emphasis on current productive activity, relative to development of new technologies.