scholarly journals Financing Energy Innovation: Internal Finance and the Direction of Technical Change

2021 ◽  
Author(s):  
Joëlle Noailly ◽  
Roger Smeets
Keyword(s):  
Balance Sheet ◽  
Energy Transition ◽  
Clean Energy ◽  
Cash Flows ◽  
Financing Constraints ◽  
Large Set ◽  
The European Union ◽  
Energy Technologies ◽  
Energy Innovation ◽  
And Control

AbstractAchieving the goals of the Paris Agreement and of climate neutrality by 2050 in the European Union will require mobilizing financial investments towards clean energy innovation. This study examines the role of internal finance (cash flows and cash holdings) and financing constraints for innovation in energy technologies. We construct a dataset for 1,300 European firms combining balance-sheet information and patenting activities in renewable (REN) and fossil-fuel (FF) technologies and estimate the sensitivity of patenting activities to firms’ internal finance. We use count estimation techniques and control for a large set of firm-specific characteristics and market developments in REN and FF technologies. We find that patenting activities of firms specialized in REN innovation are significantly more sensitive to a shock in cash flows than firms specializing in FF innovation. Hence, our results emphasize that innovative firms in clean energy may be particularly vulnerable to financing constraints. We discuss the implications of these results for energy transition policies aiming to redirect finance towards clean energy R&D.

The Role of Clean Energy

2018 ◽  
Author(s):  
Joseph Romm
Keyword(s):  
Energy Transition ◽  
Clean Energy ◽  
Low Carbon ◽  
Low Carbon Economy ◽  
Energy Technologies ◽  
Carbon Economy

This chapter will focus on the clean energy revolution and the technologies most widely discussed for a transition to a low carbon economy. It will explore the scale of the energy transition needed to explain why some energy technologies are considered likely to be major...

scholarly journals Harnessing Small Country Collaboration Opportunities to Advance Energy Innovation and Joint Investments

2021 ◽  
Author(s):  
Anneliese Gegenheimer ◽  
Charles Michael Gegenheimer
Keyword(s):  
Clean Energy ◽  
Knowledge Based ◽  
Energy Technologies ◽  
Regional Markets ◽  
Proposed Model ◽  
Small Countries ◽  
Sustainable Investment ◽  
Pilot Programs ◽  
Energy Innovation ◽  
D Investment

Greater international collaboration is required to catalyze research and development (R&D) investment flows in energy technologies. Successful deployment of such technologies requires innovative funding mechanisms, intellectual property, and data-driven analyses to make smarter, sustainable investment decisions. As small countries are increasingly dealing with effects of climate change, some are projected to lose large portions of their economy. This chapter discusses ways that smaller countries, both in the developed and developing world, can harness international cooperation to advance energy innovation and mitigate such impact. In contrast to collaboration with larger countries, smaller country collaboration can build more agile, balanced partnerships in which participating countries co-develop and co-own R&D and training, and define pilot programs that target their own needs. Leveraging each other’s strengths, small countries can become catalysts for global change. Smaller country collaboration is explored through a proposed model of collaboration in energy innovation between Singapore and Estonia, often considered gateways to Southeast Asia and the EU plus Russia, respectively. Specifically, Singapore and Estonia have the opportunity to leverage each other’s startup ecosystems, innovation systems, knowledge-based economies, and regional markets to build a niche in clean energy technologies, particularly energy storage innovation, with potential global impact on larger markets.

Conclusion

2018 ◽  
Author(s):  
Donald Zillman ◽  
Martha Roggenkamp ◽  
LeRoy Paddock ◽  
Lee Godden
Keyword(s):  
Energy Transition ◽  
Future Directions ◽  
Energy Technologies ◽  
Legal Innovation ◽  
Energy Innovation ◽  
Economic Developments ◽  
Legal Frameworks ◽  
Energy Law

The final chapter links contemporary political and economic developments with an historical overview of innovation in energy technologies and energy transition. In order to achieve the goals of the Paris Agreement both technological innovation and legal innovation will be essential and wide-ranging. This chapter canvasses the role of governing legal frameworks in facilitating energy innovation. Against this background it provides a summary of the key conclusions from the various chapters and discusses energy law, energy globalization, and energy nationalism. The chapter provides predictions of future directions in energy law and transformation by reference to the three factors of energy markets and new actors, climate change and sustainability, and energy security.

scholarly journals Foreign currency borrowing and firm financing constraints in emerging markets: evidence from India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sanket Mohapatra ◽  
Jay Prakash Nagar
Keyword(s):  
Foreign Currency ◽  
Emerging Market ◽  
Detailed Balance ◽  
Balance Sheet ◽  
Cash Flows ◽  
Foreign Banks ◽  
Financing Constraints ◽  
Content Type ◽  
Foreign Currency Debt ◽  
The Relationship

PurposeFirst, the purpose of this study is to examine the relationship between foreign-currency debt and firms' financing constraints for India, the second-largest emerging market economy after China. Second, this study provides insights into how firms' financing constraints evolve prior to, during and after foreign currency borrowing. Third, it demonstrates the extent to which banks' ownership status and firms' characteristics influence the relationship between foreign currency borrowing and firms' financing constraints.Design/methodology/approachThis study uses detailed balance sheet data for 2,512 nonfinancial listed firms in India for the 1996–2016 period to provide new evidence on the relationship between foreign currency borrowing and firms' financing constraints. This study uses a well-known measure of firms' financing constraints, the sensitivity of investment to internal cash flows (Fazzari et al., 1988, 2000; Hubbard, 1999; Love, 2003).FindingsFinancing constraints tend to be higher for firms with foreign currency debt exposure compared to other firms. Financing constraints are higher prior to new foreign currency borrowing (FCB), but decrease subsequently. Firms that have relationships with privately owned banks or foreign banks have higher financing constraints when undertaking new FCB than those with exclusive relationships with government-owned banks. Financing constraints for firms with FCB are higher during domestic credit booms than other periods. Nonmanufacturing firms and those with lower than median export revenues and higher than median tangible assets experience greater financing constraints compared to other firms when they undertake FCB.Originality/valueThe findings of this study suggest that although firms which borrow in foreign currencies are initially more financially constrained than other firms, the foreign currency borrowing reduces their financing constraints. The findings on how global and domestic macroeconomic conditions and firm-specific characteristics influence the relationship between financing constraints and foreign currency borrowing can provide directions for policy to better leverage the benefits of international financial integration.

scholarly journals Weaving an Innovation Network from the Middle Out: the Case of the Renewable Energy Ecosystem

2021 ◽  
Author(s):  
Tali Zohar ◽  
Yael Parag ◽  
Ofira Ayalon
Keyword(s):  
Renewable Energy ◽  
Energy Transition ◽  
Clean Energy ◽  
Central Component ◽  
Innovation Network ◽  
Low Carbon ◽  
Innovation Ecosystem ◽  
Sequence Of Events ◽  
Energy Innovation ◽  
Push And Pull

Abstract BackgroundRenewable energy (RE) systems are becoming a central component of the clean energy transition and often seen as the way to combat climate change. Their establishment requires innovation, investments, and deployment policies for emerging technologies. Governments around the world are increasingly trying to create and support the energy-tech and climate-tech innovation ecosystems in their attempt to promote an innovation-supporting environment. However, energy innovation policies are often aligned with the dichotomous notion of technology-push and market-pull, and overlook the social, political, and cultural contexts in which RE innovative technologies are embedded, and the multiple actors and interactions that are associated with their development. By combining the Middle-Out Perspective (MOP) and innovation literature, this paper argues that an innovation ecosystem could be weaved from the middle-out.MethodsThis paper analyses the case of Israel’s RE innovation ecosystem creation through the lens of the MOP and applies a socio-technical interpretation to the push and pull terminology. Process tracing methodology was applied to trace a sequence of events to determines whether an actor was pushed or pulled, the formation of a network of actors, and its evolvement to an energy innovation ecosystem from the middle-out. Data for the analysis was collected from interviews, policy papers, media articles and Governmental decisions.ResultsThe analysis demonstrates how middle actors push the implementation of RE technologies in Israel, and at the same time pull decision-makers and other middle actors to promote the low carbon transition. The push and pull forces and the interactions between actors lead to the engagement of new stakeholders in the innovation network, the adoption of more ambitious RE targets and supporting policies, and to the creation of an effective RE innovation ecosystem.ConclusionsThis paper uses the MOP as an analytical framework and the push and pull terminology to demonstrate how a middle actor initiates and develops an actor-network by interacting with other actors. As this network broadens, it forms an effective innovation ecosystem. Network of actors have the potential to lead change, provide innovative ideas, initiate research, encourage investments, create employment possibilities, and promote regional sustainable development.

scholarly journals Are We on the Right Track? Collective Self-Consumption and Energy Communities in the European Union

2021 ◽  
Vol 13 (22) ◽  
pp. 12494
Author(s):  
Dorian Frieden ◽  
Andreas Tuerk ◽  
Ana Rita Antunes ◽  
Vasilakis Athanasios ◽  
Alexandros-Georgios Chronis ◽  
...  
Keyword(s):  
Renewable Energy ◽  
Electricity Market ◽  
National Level ◽  
Energy Transition ◽  
Clean Energy ◽  
Energy System ◽  
The European Union ◽  
High Expectations ◽  
The Right ◽  
The Eu

To accelerate the energy transition, the EU “Clean Energy for all Europeans” package aims to strengthen the involvement of end consumers in the energy market. To this end, together with so-called “active consumers” and provisions for individual and collective renewable energy self-consumption, two types of energy communities were introduced. The EU framework, however, leaves many details of the transposition process to the national level. The corresponding directives were supposed to be transposed by the end of December 2020 (recast Electricity Market Directive, defining active consumers and citizen energy communities) and by the end of June 2021 (Renewable Energy Directive, defining renewables self-consumption and renewable energy communities). In this paper, we critically discuss major developments of the transposition, including questions of the general distinction of the different concepts, governance and ownership, physical expansion, administrative barriers and the overall integration of energy communities into the energy system. The analysis builds on country case studies as well as on previous work by the authors on the status of the transposition process throughout the EU. The paper shows that the national approaches differ greatly and are at very different stages. While basic provisions are in place in most Member States to meet the fundamental EU requirements, the overall integration into the energy system and market is only partly addressed. This concerns, for instance, the analysis of system impacts of energy communities and measures that would allow and support energy system-friendly behaviour. In addition, several practical hurdles need to be overcome. These often relate to administrative requirements such as complex registration and licensing procedures, the need for the involvement of several institutions, or difficult procedures for access to relevant data. The paper concludes that discussed barriers will need to be carefully addressed if the high expectations for the role of energy communities are to be met.

scholarly journals Financial Aspects of the European Green Deal

2021 ◽  
pp. 13-23
Author(s):  
M. Strezhneva
Keyword(s):  
European Union ◽  
Energy Transition ◽  
Clean Energy ◽  
The European Union ◽  
Economic Activities ◽  
Public And Private ◽  
Financial Decisions ◽  
Environmental Objectives ◽  
The Usa ◽  
The Eu

The climate policy of the European Union became the key priority for the European Commission, headed by Ursula von der Leyen. This article analyses both its internal and external dimensions, while concentrating on the finances of the European Green Deal, the multiyear strategy for the EU socio-economic development. The methods are demonstrated which the EC employs to mobilize public and private capital for the realization of the green transit, including the financial instruments designed to assist businesses when investing in clean energy and industry. The notion of ‘sustainable’ investment is specified that Brussels is guided by when working out its financial decisions. The EU taxonomy, a green classification system that translates the EU's climate and environmental objectives into criteria for specific economic activities for investment purposes, is presented. The research reveals how the market and regulatory powers of the EU are brought to bear in rolling out its controversial Carbon Border Adjustment Mechanism. By means of this transnational taxation Brussels hopes to avoid carbon leakage: the situation that allegedly may occur if European carbon-intensive businesses were to transfer production to other jurisdictions with laxer emission constraints. Yet a lack of flexibility in applying the CBAM is causing concern in many countries of the world, including the USA, Brazil, South Africa and China. In EU-Russia relations in particular, it risks increasing political tensions and/or causing trade retaliation due to low levels of mutual trust. Russia developing energy transition plans of her own, her efforts in this respect are now visibly stimulated by the declared EU intention to externalize its regulatory practices. At the same time, Moscow perceives this externalization as an imposition which is most unwelcome and hurts Russia disproportionally. Presumably, the European Union could put more effort in negotiating and developing this latest European initiative with international partners to win new willing ears for it.

scholarly journals The latest generation of EU Smart city projects: turning "clean energy for all" into "clean benefits for all

2019 ◽  
Author(s):  
Adriano Bisello ◽  
◽  
Daniele Vettorato ◽  
Keyword(s):  
Smart City ◽  
Smart Cities ◽  
Energy Transition ◽  
Clean Energy ◽  
Well Being ◽  
Urban Life ◽  
Positive Energy ◽  
Low Carbon ◽  
The European Union ◽  
Ongoing Research

The European Union is in the process of updating its energy policy and legislative framework under the motto “Clean Energy for All Europeans”. This will facilitate the low carbon energy transition, make it fit for the 21st century, and delivering the EU’s Paris Agreement commitments. Besides expected climate-energy benefits, the EU narrative is introducing new elements to persuade citizens and stakeholders to change their perspective, shifting the general perception from mitigation costs to development opportunities. For example, impact assessment of the new directives estimated that they would generate 900,000 jobs and an increase of up to 1% in EU GDP over the next decade. However, this is just one among several multiple benefits that could be gained thanks to the smart energy transition of cities and neighborhoods (e.g. increased value of refurbished properties, improved health and well-being, enhanced social cohesion, etc.) Starting from this premise, the ongoing research will analyses 12 ongoing EU smart cities and communities projects started between 2014 and 2017, in order to investigate their capability in using the multiple benefits as an effective communication tool, or even including them among the key performance indicators to be used in the assessment phase. In that respect, the Positive energy district concept that permeates the smart city approach of latest calls for funding provides, even more, an interesting nexus and testbed opportunity for EU ambitions. However, ongoing and future projects need to be understood not only as marketing devices for new energy efficient technologies but powerful tools requiring a radical change in management and planning of cities and urban life. In this way, positive energy districts including good habits and behaviors of urban citizens will provide equitable solutions and clear benefits for all.

scholarly journals Unlocking Opportunities in Renewable Energy Technologies in Africa: The Role of Development Financial Institutions

2021 ◽  
Vol 12 (1) ◽  
pp. 92-110
Author(s):  
Oluwaseun Viyon Ojo
Keyword(s):  
Climate Change ◽  
Renewable Energy ◽  
Financial Institutions ◽  
Energy Transition ◽  
Clean Energy ◽  
Global Energy ◽  
Renewable Energy Technologies ◽  
Energy Technologies ◽  
The Impact

Climate change and global warming are undeniably undermining global development with developing or emerging economies being the worse hit in this unfortunate development. In recent times, it has become necessary to adopt effective adaptation measures that mitigate the impact of climate change on the social, political, and economic environment. A global shift to low-carbon energy technologies through the gradual integration of renewable energy resources in the global energy mix has been generally proposed. Whilst legal and regulatory initiatives are indeed crucial in driving this global energy transition, it is equally imperative that the necessary capital is unlocked to finance the construction, development, and expansion of renewable energy projects in Africa. This paper focused on examining the impact of renewable energy technologies on climate change mitigation, and analysed the role of Development Financial Institutions (DFIs) in unlocking the vast opportunities associated with renewable energy technologies or projects, with a view to driving the clean energy transition in Africa.

scholarly journals Through the Eye of a Needle: An Eco-Heterodox Perspective on the Renewable Energy Transition

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4508
Author(s):  
Megan K. Seibert ◽  
William E. Rees
Keyword(s):  
Renewable Energy ◽  
Energy Transition ◽  
Clean Energy ◽  
Renewable Energy Technologies ◽  
Energy Technologies ◽  
Pass Through ◽  
Climate Crisis ◽  
Alternative Solutions ◽  
Extreme State ◽  
Human Enterprise

We add to the emerging body of literature highlighting cracks in the foundation of the mainstream energy transition narrative. We offer a tripartite analysis that re-characterizes the climate crisis within its broader context of ecological overshoot, highlights numerous collectively fatal problems with so-called renewable energy technologies, and suggests alternative solutions that entail a contraction of the human enterprise. This analysis makes clear that the pat notion of “affordable clean energy” views the world through a narrow keyhole that is blind to innumerable economic, ecological, and social costs. These undesirable “externalities” can no longer be ignored. To achieve sustainability and salvage civilization, society must embark on a planned, cooperative descent from an extreme state of overshoot in just a decade or two. While it might be easier for the proverbial camel to pass through the eye of a needle than for global society to succeed in this endeavor, history is replete with stellar achievements that have arisen only from a dogged pursuit of the seemingly impossible.

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