How well does Learning-by-doing Explain Cost Reductions in a Carbon-free Energy Technology?

The incorporation of experience curves has enhanced the treatment of technological change in models used to evaluate the cost of climate and energy policies. However, the set of activities that experience curves are assumed to capture is much broader than the set that can be characterized by learning-by-doing, the primary connection between experience curves and economic theory. How accurately do experience curves describe observed technological change? This study examines the case of photovoltaics (PV), a potentially important climate stabilization technology with robust technology dynamics. Empirical data are assembled to populate a simple engineering-based model identifying the most important factors affecting the cost of PV over the past three decades. The results indicate that learning from experience only weakly explains change in the most important cost-reducing factors— plant size, module efficiency, and the cost of silicon. They point to other explanatory variables to include in future models. Future work might also evaluate the potential for efficiency gains from policies that rely less on ‘riding down the learning curve’ and more on creating incentives for firms to make investments in the types of cost-reducing activities quantified in this study.Learning-by-doing, Experience Curves, Learning Curves, Climate Policy

Negative emissions-Part 3 : Innovation and upscaling

Peer reviewedPublisher PD

Negative emissions-Part 2 : Costs, potentials and side effects

Peer reviewedPublisher PD

Coal transitions—part 1: a systematic map and review of case study learnings from regional, national, and local coal phase-out experiences

A rapid coal phase-out is needed to meet the goals of the Paris Agreement, but is hindered by serious challenges ranging from vested interests to the risks of social disruption. To understand how to organize a global coal phase-out, it is crucial to go beyond cost-effective climate mitigation scenarios and learn from the experience of previous coal transitions. Despite the relevance of the topic, evidence remains fragmented throughout different research fields, and not easily accessible. To address this gap, this paper provides a systematic map and comprehensive review of the literature on historical coal transitions. We use computer-assisted systematic mapping and review methods to chart and evaluate the available evidence on historical declines in coal production and consumption. We extracted a dataset of 278 case studies from 194 publications, covering coal transitions in 44 countries and ranging from the end of the 19th century until 2021. We find a relatively recent and rapidly expanding body of literature reflecting the growing importance of an early coal phase-out in scientific and political debates. Previous evidence has primarily focused on the United Kingdom, the United States, and Germany, while other countries that experienced large coal declines, like those in Eastern Europe, are strongly underrepresented. An increasing number of studies, mostly published in the last 5 years, has been focusing on China. Most of the countries successfully reducing coal dependency have undergone both demand-side and supply-side transitions. This supports the use of policy approaches targeting both demand and supply to achieve a complete coal phase-out. From a political economy perspective, our dataset highlights that most transitions are driven by rising production costs for coal, falling prices for alternative energies, or local environmental concerns, especially regarding air pollution. The main challenges for coal-dependent regions are structural change transformations, in particular for industry and labor. Rising unemployment is the most largely documented outcome in the sample. Policymakers at multiple levels are instrumental in facilitating coal transitions. They rely mainly on regulatory instruments to foster the transitions and compensation schemes or investment plans to deal with their transformative processes. Even though many models suggest that coal phase-outs are among the low-hanging fruits on the way to climate neutrality and meeting the international climate goals, our case studies analysis highlights the intricate political economy at work that needs to be addressed through well-designed and just policies.BMBF, 01LA1826A, Ökonomie des Klimawandels - Verbundprojekt: Die politische Ökonomie eines globalen Kohleausstiegs (PEGASOS) - Teilprojekt 1: Koordination, Analyse der politischen Ökonomie vergangener KohleausstiegeBMBF, 01LA1810A, Ökonomie des Klimawandels - Verbundprojekt: Die Zukunft fossiler Energieträger im Zuge von Treibhausgasneutralität (FFF) - Teilprojekt 1: Implementierung von AusstiegspfadenBMBF, 01LN1704A, Nachwuchsgruppe Globaler Wandel: CoalExit - Die Ökonomie des Kohleausstiegs - Identifikation von Bausteinen für Rahmenpläne zukünftiger regionaler StrukturwandelBMBF, 01LG1910A, Qualitätssicherung von IPCC-AR6: Chapter Scientist für WG III, Kapitel 2 (Emissions trends and drivers

Interpreting Interim Deviations from Cost Projections for Publicly Supported Energy Technologies

Widespread public funding of nascent energy technologies, combined with recent increases in costs the most heavily supported, has introduced a policy dilemma: should policymakers sustain these programs in anticipation cost increases being temporary disturbances or should they eliminate them to avoid risking billions of dollars of public funds on technological dead ends? This paper uses experience curve to estimate possible policy outcomes and to introduce new ways of assessing near term cost dynamics

Cost Containment for Climate Policy Requires Linked Technology Policies

Safety valves, discretionary advisory boards, and other cost containment mechanisms enhance the political feasibility of stringent climate policy by limiting firms’ and households’ exposures to higher than anticipated costs associated with reducing greenhouse gas emissions. However, cost containment comes at a price; it increases the risk of climate-related damages and it also discourages investments in low-carbon innovation

Robust Incentives and the Design of a Climate Change Governance Regime

A poorly coordinated international governance regime has the advantage of reducing the risk associated with a global policy failure. Beyond this case study, the importance of this positive effect depends on the probability of policy failures in each country, the correlations among them and the probability of a global policy failure