The final paper of my dissertation has just been accepted for publication:
This paper analyses the field of innovation studies regarding barriers to low-carbon innovation and consequences for finance (investment and divestment) and contributes to a more holistic understanding of the underlying mechanisms. A combination of technological barriers combined with economic barriers, institutional and political barriers contribute to sub-optimal low-carbon investment all along the innovation cycle. Policy makers need to take a systemic approach to enable the redirection of diverse private financial sources. Instruments range from cutting ‘dirty’ (R&D) subsidies and support for clean technology innovation and diffusion, levelling the institutional playing field and making risks of high-carbon and low-carbon technologies transparent to providing a consistent but adaptive long-term transition strategy. This would allow financiers to gradually shift their investments away from high-carbon mainstream markets and scale low-carbon technology niche-markets. However financiers also need to sharpen their competencies with regard to new clean technologies and markets.
Read the open access paper here
Happy to see that our INNOPATHS homepage is now online: www.innopaths.eu
Diversity makes the financial system more resilient. In addition, there is a diverse investment demand to make the transition to a more sustainable energy system. We need, among others, investment in energy transition, circular resource use, better water management and reducing air pollution. The two are linked. Making the financial system more diverse implies more equity, less debt, more non-bank intermediation and more specialized niche banks giving more relation based credit. This will arguably also increase the flow of funds and resources to innovative, small scale, experimental firms that will drive the sustainability transition. Higher diversity and resilience in financial markets is thus complementary and perhaps even instrumental to engineer the transition to clean energy in the real economy.
Download the paper here
New working paper based on my PhD research published:
This paper analyses the field of innovation studies regarding barriers to low-carbon innovation and consequences for finance. It attempts to integrate previously separated literatures, bridge the gap between abstract failures and tangible barriers and add a temporal perspective to allow for more differentiated policy responses. Among the most salient problems for the commercialisation and diffusion of clean technologies, scholars have highlighted the financing environment. A complex set of barriers therefore revolves around the question of how to finance companies, projects and infrastructure based on low-carbon innovation. The paper contributes to a holistic understanding of the underlying mechanisms. A combination of technological barriers combined with economic barriers, institutional and political barriers contribute to thin financial market for low-carbon innovation all along the innovation cycle. Policy makers can chose from a variety of measures address these barriers and mobilise private finance. Avenues for future research relating to financing low-carbon innovation and corresponding policies are depicted.
My dissertation project published as a book:
The author analyses how finance flows can be guided towards low-carbon value generation and growth. He investigates the arrangements between actors in the innovation system and policy measures such as technology push, demand-pull and regulation with regard to their influence on private investments. The case studies include innovation intermediaries, energy service contracting for LED lighting and renewable energy project finance. The results show that barriers to low-carbon innovation inhibit the financing for companies, projects and infrastructure. Also, transparent structures which focus on risk and return facilitate private investments and, finally, both science, technology and innovation policies and regulation are needed to spur private finance.
Order here: PeterLang Publishers