Up-scaling, formative phases, and learning in the historical diffusion of energy technologies

The 20th century has witnessed wholesale transformation in the energy system marked by the pervasive diffusion of both energy supply and end-use technologies. Just as whole industries have grown, so too have unit sizes or capacities. Analysed in combination, these unit level and industry level growth patterns reveal some consistencies across very different energy technologies. First, the up-scaling or increase in unit size of an energy technology comes after an often prolonged period of experimentation with many smaller-scale units. Second, the peak growth phase of an industry can lag these increases in unit size by up to 20 years. Third, the rate and timing of up-scaling at the unit level is subject to countervailing influences of scale economies and heterogeneous market demand. These observed patterns have important implications for experience curve analyses based on time series data covering the up-scaling phases of energy technologies, as these are likely to conflate industry level learning effects with unit level scale effects. The historical diffusion of energy technologies also suggests that low carbon technology policies pushing for significant jumps in unit size before a ‘formative phase’ of experimentation with smaller-scale units are risky

Firm-level technology transfer and technology cooperation for wind energy between Europe, China and India: From North–South to South–North cooperation?

For several decades the leading wind energy nations were European, while China and India were mainly the recipients of technology transfer. This paper aims to explore the role technology transfer/cooperation from Europe played in shaping firm-level wind energy technologies in China and India and to discuss whether the recent technology cooperation between the Chinese, Indian, and European wind firms challenges the classical North–South technology cooperation paradigm. The research finds that firm-level technology transfer/cooperation shaped the leading wind energy technologies in China and to a lesser extent in India. The paper also finds that several trends towards South–North technology cooperation have been observed between China, India and Europe, such as South–North flows of capital, drivers for market access, and R&D leadership, while the origins of innovation (e.g. patents) seem to remain predominantly in the global North. The paper concludes that the technology cooperation between China, India, and Europe has become more multi-faceted and increasingly Southern-led

Public financing of innovation: new questions

Economic theory justifies policy when there are concrete market failures. The article shows how in the case of innovation, successful policies that have led to radical innovations have been more about market shaping and creating through direct and pervasive public financing, rather than market fixing. The paper reviews and discusses evidence for this in three key areas: (i) the presence of finance from public sources across the entire innovation chain; (ii) the concept of ‘mission-oriented’ policies that have created new technological and industrial landscapes; and (iii) the entrepreneurial and lead investor role of public actors, willing and able to take on extreme risks, independent of the business cycle. We further illustrate these three characteristics for the case of clean technology, and discuss how a market-creating and -shaping perspective may be useful for understanding the financing of transformative innovation needed for confronting contemporary societal challenges

MEDEAS: a new modeling framework integrating global biophysical and socioeconomic constraints

Producción CientíficaA diversity of integrated assessment models (IAMs) coexists due to the different approaches developed to deal with the complex interactions, high uncertainties and knowledge gaps within the environment and human societies. This paper describes the open-source MEDEAS modeling framework, which has been developed with the aim of informing decision-making to achieve the transition to sustainable energy systems with a focus on biophysical, economic, social and technological restrictions and tackling some of the limitations identified in the current IAMs. MEDEAS models include the following relevant characteristics: representation of biophysical constraints to energy availability; modeling of the mineral and energy investments for the energy transition, allowing a dynamic assessment of the potential mineral scarcities and computation of the net energy available to society; consistent representation of climate change damages with climate assessments by natural scientists; integration of detailed sectoral economic structure (input–output analysis) within a system dynamics approach; energy shifts driven by physical scarcity; and a rich set of socioeconomic and environmental impact indicators. The potentialities and novel insights that this framework brings are illustrated by the simulation of four variants of current trends with the MEDEAS-world model: the consideration of alternative plausible assumptions and methods, combined with the feedback-rich structure of the model, reveal dynamics and implications absent in classical models. Our results suggest that the continuation of current trends will drive significant biophysical scarcities and impacts which will most likely derive in regionalization (priority to security concerns and trade barriers), conflict, and ultimately, a severe global crisis which may lead to the collapse of our modern civilization. Despite depicting a much more worrying future than conventional projections of current trends, we however believe it is a more realistic counterfactual scenario that will allow the design of improved alternative sustainable pathways in future work.Ministerio de Economía, Industria y Competitividad (Project CO2017-85110-R)Ministerio de Economía, Industria y Competitividad (Project JCI-2016–28833)MEDEAS project, funded by the European Union’s Horizon2020 research and innovation programme under grant agree-ment no. 691287.LOCOMOTION project, funded by the EuropeanUnion’s Horizon 2020 research and innovation programmeunder grant agreement no. 82110