Rapid decarbonization requires additional research, development, and demonstration of low-carbon energy technologies. Various financing instruments are in place to support this development. They are frequently assessed through indicator-based evaluations. There is no standard set of indicators for this purpose. This study looks at the Nordic countries, which are leading countries with respect to eco-innovation. Different indicators to assess financing instruments are analysed with respect to their acceptance, the ease of monitoring, and their robustness. None of the indicators emerges as clearly superior from the analysis. Indicator choice is subject to trade-offs and leaves room for steering evaluation results in a desired direction. The study concludes by discussing potential policy implications of biases in indicator-based evaluation.
The Role of Environmental and Technology Policies in the Transition to a Low-Carbon Energy Industry
