The 2015 EU Energy Union Package proposes integrating renewables into the market, just as the UK has moved away from Premium Feed-in Tariffs (FiTs) for renewable electricity supply (RES-E) to something closer to the standard FiT, which, when auctioned, demonstrated a 3% real fall in the weighted average cost of capital (WACC). The UK, which has experimented with nearly all forms of RES-E support, offers the evidence base for designing the Energy Union’s RES-E support. Innovation needs a further redesign to deliver adequate funding, best done through country contributions to an EU-wide innovation competition.
The term ‘Green Energy Economy’ (GEE) received increasing policy and scientific attention following the 2008–2009 global financial crisis, leading to the implementation of numerous ‘Green Growth’ economic stimulus packages that targeted low-carbon energy technologies. These initiatives were portrayed as key elements in the transition to a green economy, in which low-carbon energy systems would play a vital role. However, and setting aside conceptual variations, uncertainties and fragmented knowledge remain in the interplay between a green economy, low-carbon energy systems and governance. This research area raises various questions regarding the performance, implications and complexities of policies and strategies addressing GEE transitional pathways. In addition, achieving a GEE compatible with climate, social and economic goals is an enormous challenge for society, and goes beyond the technological domain. This special issue provides a series of articles that critically investigate these concerns from an interdisciplinary point of view, and provide relevant policy insights using a variety of analytical approaches.
Globally, new forms of electromobility are challenging established transport technologies based on internal combustion engines. The authors explore how this transition is simultaneously unfolding in four countries, enabling them to shed some light on the dynamics and determinants of technological path creation. The paper's analysis covers two old industrialized countries (France and Germany) and two newly industrialized countries (China and India) with very different market conditions and policy frameworks. It reveals enormously different choices of technologies and business models and traces them back to four main drivers of divergence: technological capabilities, demand conditions, political priorities and economic governance.
This paper asks what insights the literature provides on divergence versus convergence of innovation paths in Europe and Asia. It contrasts the abundant literature on determinants of innovation paths with the scarcity of studies that are explicitly comparative across countries or continents. Implicit conclusions however emerge from several lines of work including evolutionary perspectives which stress differences in national conditions, and other perspectives which stress latecomer and globalisation effects. This paper distils and draws together the main conclusions on why innovation paths can be expected to diverge or converge. Its contribution lies in spelling out and bringing together implicit and explicit insights from a wide range of literatures. It also provides an analytical backdrop for some of the other papers in this special issue of Science and Public Policy which provide comparative empirical analyses of low carbon innovation paths.