The pace of governed energy transitions: agency, international dynamics and the global Paris agreement accelerating decarbonisation processes?

The recent debate on the temporal dynamics of energy transitions is crucial since one of the main reasons for embarking on transitions away from fossil fuels is tackling climate change. Long-drawn out transitions, taking decades or even centuries as we have seen historically, are unlikely to help achieve climate change mitigation targets. Therefore, the pace of energy transitions and whether they can be sped up is a key academic and policy question. Our argument is that while history is important in order to understand the dynamics of transitions, the pace of historic transitions is only partly a good guide to the future. We agree with Sovacool’s [1] argument that quicker transitions have happened in the past and may therefore also be possible in the future globally. The key reason for our optimism is that historic energy transitions have not been consciously governed, whereas today a wide variety of actors is engaged in active attempts to govern the transition towards low carbon energy systems. In addition, international innovation dynamics can work in favour of speeding up the global low-carbon transition. Finally, the 2015 Paris agreement demonstrates a global commitment to move towards a low carbon economy for the first time, thereby signalling the required political will to foster quick transitions and to overcome resistance, such as from incumbents with sunk infrastructure investments

Renewable energy growth and the financial performance of electric utilities : A panel data study

Electric utilities are under pressure to increase clean energy production. Although the adoption of renewable energy can improve the utilities' environmental performance, a fundamental question is if it also pays in economic terms. Building on the natural-resource-based view of the firm, we answer this question using two data analysis methods. First, we carry out a regression analysis of panel data from 66 large electric utilities covering the period 2005–2014, applying both a fixed and random effects estimator. Subsequently, we use the Granger causality test to explore possible causality links. Our results show a negative correlation at the firm level between renewable energy increase and short-term as well as long-term financial performance. More specifically, we find that an increase in renewable energy penetration Granger-causes a reduction of long-term performance. However, the results also show that a firm's carbon intensity moderates the relationship. When the focus is on the country level, we find that an increase in renewable power penetration is also negatively correlated to long-term firm performance, which might be explained by the combined effect of low power demand and overcapacity in developed economies. We conclude that the concept of organizational ambidexterity may supplement the natural-resource-based view of the firm for a better understanding of the relationship between an increase in renewable power and a firm's profitability.peerReviewe