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Begin New Search Topic Green Technology Publishing Institution Centre for International Environmental Studies, The Graduate Institute (IHEID) Publication Year within 10 Years Publication Year within 5 Years

1. Can adjustment costs in research derail the transition to green growth?

Author:
Laura Nowzohour
Publication Date:
05-2021
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Adjustment costs are a central bottleneck of the real-world economic transition essential for achieving the sizeable reduction of greenhouse gas (GHG) emissions set out by policy makers. Could these costs derail the transition process to green growth, and if so, how should policy makers take this into account? I study this issue using the model of directed technical change in Acemoglu, Aghion, Bursztyn, and Hemous (2012), AABH, augmented by a friction on the choice of scientists developing better technologies. My results show that such frictions, even minor, materially affect the outcome. In particular, the risk of reaching an environmental disaster is higher than in the baseline AABH model. Fortunately, policy can address the problem. Specifically, a higher carbon tax ensures a disaster-free transition. In this case, the re-allocation of research activity to the clean sector happens over a longer but more realistic time horizon, namely around 15 instead of 5 years. An important policy implication is that optimal policies do not act over a substantially longer time horizon but must be more aggressive today in order to be effective. In turn, this implies that what may appear as a policy failure in the short-run | a slow transition albeit aggressive policy | actually re ects the efficient policy response to existing frictions in the economy. Furthermore, the risk of getting environmental policy wrong is highly asymmetric and `robust policy' implies erring on the side of stringency.
Topic:
Climate Change, Economics, Environment, Economic Growth, Green Technology, Economic Policy, Renewable Energy, and Sustainability
Political Geography:
Global Focus

2. What do investors in electric vehicles technologies want?

Author:
Bettina Kast, Eva Bortolotti, and Joëlle Noailly
Publication Date:
09-2020
Content Type:
Policy Brief
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
With 25% of worldwide emissions due to road transport, the deployment of electric vehicles (EVs), full battery electric vehicles and plug-in hybrid electric vehicles – presents many promises to mitigate climate change. Despite its rapid growth, the market share of EVs vehicle remains low in Europe. Norway leads the EV market with 10% of total vehicle stock, followed by Iceland (3.3%), the Netherlands (1.9%) and Sweden (1.6%) (IEA, 2019). This Policy Brief presents the results of a survey among European clean tech investors examining which policy instruments and design can best mobilize private investments to advance e-mobility technologies.
Topic:
Environment, Science and Technology, Green Technology, Private Sector, Transportation, and Ecology
Political Geography:
Europe, Norway, and Netherlands

3. What drives them to invest in the sustainable mobility transition ? Evidence from a conjoint experiment on European investors' policy preferences

Author:
Eva Bortolotti
Publication Date:
10-2020
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Substantial private investment is required if public policy objectives aim to increase the market share of Electric Vehicles (EVs) and prevent locking-in emissions-intensive development pathways. To maximize the effectiveness of future policies and successfully attract private capital, policy makers need to gain a better understanding of how investors behave, and of how policy design can drive investments decisions. This paper leverages an adaptive conjoint analysis (ACA) method to investigate the policy preferences of 41 European investors affiliated with different investment institutions. Findings reveal that investors' characteristics as institution type and size of assets under management affect investors' preferences over different e-mobility policy attributes. Furthermore, this study shows that behavioral factors, namely investors' a-priori beliefs on the impacts of climate change and the COVID-19 crisis, play a role in determining investors' policy preferences. By providing an analysis of investors' behavior, this research can support policymakers to design more effective policy instruments to attract investments in electric mobility during and after the COVID-19 crisis.
Topic:
Environment, Green Technology, Investment, Private Sector, COVID-19, Ecology, Motor Vehicles, and Cars
Political Geography:
Europe

4. The heterogeneous impact of coal prices on the location of cleaner and dirtier steel plants

Author:
François Cohen and Giulia Valacchi
Publication Date:
11-2020
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Climate policy will predominantly affect industries that primarily rely on fossil fuels, such as steelmaking. Within these industries, exposure may be different by country according to the energy-intensity of national plants. We estimate the effect of coal prices on steel plant location worldwide and production preferences for BOF, a polluting technology, and EAF, a greener one. A 1% increase in national coal prices reduces BOF installed capacity by around 0.37%, while it has no statistically significant impact on EAF capacity. We simulate the implementation of a stringent European carbon market with no border adjustment and find a non-negligible shift in steel production outside Europe, with a concomitant impact on the technologies employed to produce steel. If applied worldwide, the same policy would primarily affect production in Asia, which relies on BOF and currently benefits from lower coal prices than those expected to emerge in the future.
Topic:
Climate Change, Natural Resources, Green Technology, Fossil Fuels, Coal, and Price
Political Geography:
Europe

5. Policy uncertainty and renewable energy investments in Romania

Author:
Mihnea-George Filip
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Mobilizing private investments for the renewable energy transition requires credible policy support over the long-term. This Policy Brief discusses how Romania’s abrupt policy changes and inconsistent policy signals over the last decade have deterred private investments in the renewable energy sector. The example of Romania provides key policy lessons for other countries engaged in the energy transition. Romania has one of the highest renewable energy potentials in Europe (up to 71 GW), which is approximately six times higher than the country’s current renewable deployment (IRENA 2017). As shown in Figure 1, wind and solar PV energy experienced a significant boom between 2009 and 2013 followed by a more or less complete stagnation since 2014.
Topic:
Climate Change, Environment, Green Technology, Investment, Economic Policy, Renewable Energy, and Fossil Fuels
Political Geography:
Eastern Europe and Romania