innovation in the energy sector lessons learnt from r d expenditures and patents in selected iea countries abstract long time series of the iea and international patent offices offer a huge potential for scientific investigations of the energy innovation process thus this paper deals with a broad literature review on innovation drivers and barriers and an analysis of the knowledge induced by public research and development expenditures r d and patents in the energy sector the cumulative knowledge stock induced by public r d expenditures in 14 investigated iea countries is 102 3 bn eur in 2013 nuclear energy has the largest share of 43 9 bn eur followed by energy efficiency accounting for 14 9 bn eur fossil fuels with 13 5 bn eur and renewable energy with 12 1 bn eur a regression analysis indicates a linear relation between the gdp and the cumulative knowledge with each billion eur of gdp leading to an additional knowledge of 3 1 mil eur however linearity is not given for single energy technologies further the results show that appropriate public r d funding for research and development associated with a subsequent promotion of the market diffusion of a niche technology may lead to a breakthrough of the respective technology

optimal incentive schemes with many agents the grossman hart principal agent model of moral hazard is extended to the multiple agent case to explore the use of relative performance in optimal incentive contracting under the assumption that the principal chooses incentive schemes to implement agent actions as nash equilibria necessary and sufficient conditions are derived for the optimality of independent contracts of rank order tournaments and for attainability of the first best in this context the relation of the principal s welfare to the correlation between the underlying randomness in outputs of different agents is also investigated finally some problems with the nash equilibrium implementation assumption are discussed in this paper we extend the grossman hart analysis of the principal agent problem to a multiple agent setting in this version of the problem a risk neutral principal is assumed to observe the output or a performance index for each risk averse agent the output of any agent depends on a privately observable action chosen by the agent and an exogenous random variable the realization of which is not observed either by the principal or by the agent before choosing its action we especially focus attention on the role of relative performance evaluation in optimal incentive contracts and the way this depends on properties of the underlying production technology and the joint distribution of the random variables affecting the outputs of different agents in section 2 of the paper we consider the principal s problem of finding an optimal incentive scheme and an action tuple for agents subject to the constraint that the latter be implemented as a nash equilibrium between agents by the chosen incentive scheme where agents must attain at least their reservation utilities a characterization of optimal incentive schemes is derived analogous to the grossman hart characterization for the single agent problem this characterization is then utilized to find sufficient and generically necessary conditions for a optimal contracts for any agent to be independent of the performance of other agents and b optimality of rank order tournaments where payments depend solely on ordinal comparisons of output across agents we then describe a necessary and sufficient condition for the principal to extract maximum advantage from relative performance clauses i e achieve the first best level of expected utility in the multiagent situation an implication of this result is that under fairly weak conditions perfect correlation in the underlying production uncertainties for different agents enables the principal to attain the first best if and only if sufficiently heavy penalties can be inflicted on agents we then enquire what happens in intermediate cases of non perfect correlation it turns out that while in general the principal s welfare is a continuous function of the correlation coefficient it is not always nondecreasing in the latter because the correlation coefficient is not a general measure of association between two random variables but rather a measure of linear association between them

the renewables portfolio standard in texas an early assessment texas has rapidly emerged as one of the leading wind power markets in the united states this development can be largely traced to a well designed and carefully implemented renewables portfolio standard rps the rps is a new policy mechanism that has received increasing attention as an attractive approach to support renewable power generation though replacing existing renewable energy policies with an as of yet untested approach in the rps is risky early experience from texas suggests that an rps can effectively spur renewables development and encourage competition among renewable energy producers initial rps targets in texas were well exceeded by the end of 2001 with 915 mw of wind installed in that year alone rps compliance costs appear negligible with new wind projects reportedly contracted for well under 3 us cent k wh in part as a result of a 1 7 us cent kwh production tax credit an outstanding wind resource and an rps that is sizable enough to drive project economies of scale obliged retail suppliers have been willing to enter into long term contracts with renewable generators reducing important risks for both the developer and the retail supplier finally the country s first comprehensive renewable energy certificate program has been put into place to monitor and track rps compliance c 2002 published by elsevier science ltd less

natural resources curse or blessing are natural resources a curse or a blessing the empirical evidence suggests that either outcome is possible this paper surveys a variety of hypotheses and supporting evidence for why some countries benefit and others lose from the presence of natural resources these include that a resource bonanza induces appreciation of the real exchange rate deindustrialization and bad growth prospects and that these adverse effects are more severe in volatile countries with bad institutions and lack of rule of law corruption presidential democracies and underdeveloped financial systems another hypothesis is that a resource boom reinforces rent grabbing and civil conflict especially if institutions are bad induces corruption especially in nondemocratic countries and keeps in place bad policies finally resource rich developing economies seem unable to successfully convert their depleting exhaustible resources into other productive assets the survey also offers some welfare based fiscal rules for harnessing resource windfalls in developed and developing economies

cost competitive incentives for wind energy development in china institutional dynamics and policy changes abstract this paper presents an overview of the development of wind power in china the factors that affect the directions of wind power development are analyzed it examines the economics of windfarm development and compares it with conventional energy sources the major constraints in wind technology development and defects of the current policies are discussed it points out that wind power development should be subject to rational policy change and institutional adjustment it discusses the incentive mechanisms and institutional frameworks for future development particular importance is attributed to market incentives for wind power to reach the objectives of industrialization and commercialization a number of cost competitive incentive measures and policies are recommended i introducing market based mechanisms through standard power purchase agreement ii establishing effective investment policies and regulations to attract private investment iii promoting localization of wind turbine production iv adjusting tax and subsidy policies and v reforming governmental institutions to make clear rules and responsibilities for policymaking and enhancing communication coordination between relevant government agencies in order to formulate uniform and effective policies

government funded renewable energy innovation in china abstract with the rapid development of the economy china is facing pressures caused by traditional energy deficiency and environmental pollution in recent years which has forced the chinese government to start to pay attention to the development and utilization of renewable energy re this article based on data and statistics available up to 2008 studies features of china s re technology innovation and problems thereof it finds that national science and technology programs are the main aspect of china s re technology innovation and most of r d funds for the re technology come from china s three main national programs besides the overall expenditures on re technology innovation constitute only a small proportion of china s total domestic r d funding and seem not enough this paper also finds that compared with research and development stages of re technology the demonstration and diffusion of re technology in china are given less attention and thus are relatively less sufficient furthermore influenced by china s traditional scientific research system there appears lack of sufficient incentives and opportunities for private sectors to fully participate in re technology innovation because most national programs are undertaken by universities or research institutes

transforming the energy sector the evolution of technological systems in renewable energy technology this paper analyses the development and diffusion of technologies that utilize renewable energy sources in germany sweden and the netherlands the analysis enlarges the life cycle model of industry evolution to one where the focus is on the formation and evolution of new technological systems particular focus is on explaining success and failures in shifting from a formative phase into one characterized by positive feedbacks a set of challenges is identified for policy makers attempting to influence the process of transforming the energy sector

prospects for global market expansion of china s wind turbine manufacturing industry abstract emerging economies are increasingly contributing to global innovation including clean tech innovation the development of china s wind power sector has often been used to illustrate this point china s domestic wind power market is the largest in the world and is largely supplied by domestic manufacturers competition for market share in the domestic market may pressure firms to innovate which consecutively improves prospects for global expansion this paper reviews developments in china s domestic wind turbine market using the technological innovation system framework we analyze the pressure to innovate arising from market competition and assess the prospects for global expansion of chinese wind turbine manufacturers we conclude that domestic customers are not pressured or incentivized to perform with respect to power output such that turbine manufacturers are not pressured to perform with respect to turbine efficiency or maintenance needs pressure to innovate is further reduced by formalizing connections between wind farm developers and turbine manufacturers chinese turbine manufacturers cannot yet compete with leading global brands in technological leadership the prospects for exports are improved however by the preferential supply of project financing from institutional investors such as the china development bank from chinese utilities that seek global expansion and from the manufacturers themselves

local demand pull policy and energy innovation evidence from the solar photovoltaic market in china abstract market demand is an important driver for inducing innovation with many empirical studies supporting the demand induced innovation hypothesis critiques of such studies however emphasize that new empirical evidence that can address existing empirical challenges is needed furthermore existing literature disagrees about whether the locus of demand pull policy matters in this paper we use empirical evidence from the distributed solar photovoltaic pv market in china to address the following questions 1 is there evidence of demand induced innovation 2 does the effect of local demand pull policy differ from the effect of non local demand pull policy on demand induced innovation to address these questions we develop and analyze an original database of pv balance of system bos patents in the distributed pv market filed between 2005 and 2014 in china our results support the demand induced innovation hypothesis and suggest that only local demand significantly induces pv bos innovations in the distributed pv market in china the different effects of local demand and non local demand emphasize the importance of local markets and local policies lending some support to bottom up approaches to clean energy governance

targeting the poor using community information abstract governments and aid agencies target transfers to the poor but audits to deter the rich are costly this paper analyzes how community information can improve targeting if each community is given a hard budget constraint then targeting costs can be substantially reduced by asking recipients to make reports about each other audits are threatened in the event of a disagreement but never carried out in equilibrium this scheme is immune to collusion

has pricing behaviour in the us automobile industry become more competitive the literature in the us is divided over whether the character of the domestic automobile industry has changed recently becoming less oligopolistic this paper investigates whether domestic industry pricing policies have changed since the oil embargo the paper finds evidence that industry pricing policy has changed from that consistent with a target rate of return pricing to one more consistent with marginal cost pricing

technological learning and renewable energy costs implications for us renewable energy policy abstract this paper analyzes the relationship between current renewable energy technology costs and cumulative production research development and demonstration expenditures and other institutional influences combining the theoretical framework of learning by doing and developments in learning by searching with the fields of organizational learning and institutional economics offers a complete methodological framework to examine the underlying capital cost trajectory when developing electricity cost estimates used in energy policy planning models sensitivities of the learning rates for global wind and solar photovoltaic technologies to changes in the model parameters are tested the implications of the results indicate that institutional policy instruments play an important role for these technologies to achieve cost reductions and further market adoption

bottom up estimation of industrial and public r d investment by technology in support of policy making the case of selected low carbon energy technologies abstract this paper discusses a bottom up approach to estimate the level of r d investment by technology in areas where data are scarce it develops a four step methodology for the estimation of corporate r d investments at technology level this approach can overcome gaps in existing data by combining publicly available information in a novel way even though it introduces some uncertainty this is illustrated for a set of low carbon energy technologies that were identified as key for meeting europe s long term energy and climate objectives by the european strategic energy technology plan the paper finds that the aggregated r d investments dedicated to these technologies amounted to 3 3 billion in the eu in 2007 including public funding from european union member states and at eu level and industrial research activities from companies with headquarters registered in the eu the results allow conclusions on the european energy research policy to be drawn such as the dominance of industrial funds and have provided significant input to the european policy making in this field the paper ends with suggestions on how to further enhance the accuracy of the approach and how to widen its application to other sectors

oil and resource backed aggression a common misperception about oil politics is that it has a uniform monolithic effect on policy development this paper argues that in fact the net political effect of oil varies dramatically depending on the nature of the petrostate it shows that oil income when combined with revolutionary governments in petrostates generates strong incentives for foreign policy aggression and international conflict the aggressiveness of petro revolutionary states is shown to have consequences in both military and economic spheres of international relations militarily the aggressiveness of this type of state leads to a high rate of armed conflicts economically the aggressiveness of petro revolutionary states shapes global oil markets and international economic relations the argument is tested using statistical analysis of international conflicts and economic sanctions the policy implications are then considered focusing on the negative global impacts of dependence on oil consumption

unique implementation of incentive contracts with many agents in this paper we consider the problem of implementation when a principal hires many agents and is not able to monitor their actions we distinguish two cases i when actions are mutually observable among agents ii when actions are not observable at all in i there is a mechanism in which the first best arises as a unique perfect equilibrium in ii we show by two examples that typically there are multiple equilibria if the principal merely offers a set of optimal sharing rules however we prove that the principal can use these optimal sharing rules as a starting point and construct a multi stage mechanism that has a unique second best perfect bayesian equilibrium

efficient and nearly efficient partnerships this paper shows in two ways that the degree to which free riding diminishes the performance of deterministic partnerships may be less than has been generally thought first a necessary and sufficient condition is provided for a partnership to sustain full efficiency it implies that many non trivial partnerships sustain efficiency such as generic ones with finite action spaces and neoclassical ones with leontief technologies second approximate efficiency is shown to be achievable in a large class of partnerships including ones with smooth and monotonic production and disutility functions approximate efficiency is achieved by mixed strategy equilibria one partner takes with small probability an inefficient action the degree to which efficiency is approximated is restricted only by the amount of liability the partners can bear nonetheless their equilibrium payments are not arbitrarily large

coordinating development can income based incentive schemes eliminate pareto inferior equilibria individuals inability to coordinate investment may significantly constrain economic development in this paper we study a simple investment game characterized by multiple equilibria and ask whether an income based incentive scheme can uniquely implement the high investment outcome a general property of this game is the presence of a crossover investment point at which an individual s incomes from investment and noninvestment are equal we show that arbitrarily small errors in the government s knowledge of this crossover point can prevent unique implementation of the high investment outcome we conclude that informational requirements are likely to severely limit a government s ability to use income based incentive schemes as a coordination device

wind turbine manufacturing in china a review abstract domestic wind turbine manufacturing sector in china has experienced development stages starting from scratch to mass production during the 11th fyp period 2006 2010 the main goal of wind power policy in china is to promote the commercialization of wind power by large scale deployment of wind farms this goal has been realized to a great extent and now the cost of wind power generation is nearly comparable to coal fired power generation in china the industry policy which devotes to mass production of domestic wind turbines is also largely successful the purpose of the paper is to provide an overview on wind turbine manufacturing sector in china the policy evolution in different stages achievements and challenges pertinent to the sector are addressed in the paper key findings are that the misleading industry policy which provides strong incentive to blind entrance and competition for scale and price and restrains innovation as well is the key obstacle for the sustainable development of the sector deficient technology standard and qualification system and the misplaced franchise bidding system also indulge vicious competition and oversupply creating a level playground for all turbine supplies providing strong incentive to innovative manufacturers establishing thorough and practicable standard and qualification system and fine tuning the directive of the franchise bidding system towards technology and service are the primary policy implications proposed by our study

policies to accelerate the growth of offshore wind energy sector in india abstract india s power generation capacity needs to be augmented to support the growing demands for electricity india which has predominantly used fossil fuels to power its generators need to make a switch to clean energy fuels but renewable sources form a miniscule portion 26 gw 12 of india s overall installed power capacity 210 gw there is no contribution from offshore wind farms to the energy basket for india as there is no policy framework to encourage the development of offshore wind farms several european countries have tapped the offshore wind energy potential to reduce their dependence on adopted by these countries to identify the core components 21 of them of robust policy intervention a detailed questionnaire was administered to 181 stakeholders of wind energy in india to seek their feedback on these building blocks these core components variables in research parlance are then subjected to factor analysis to understand the underlying structure of the variables the factor analysis logically reduces these 21 variables into five factors government support fiscal and quota based incentives availability of local expertise capital for investments and building an enabling r d ecosystem which are then fed into a logistic regression model as independent variables to predict the probability of growth of offshore wind energy dependent variable in the country the logistic regression model gives the weight the impact of these independent variables in influencing the growth of offshore wind energy in india it emerges that government support fiscal and quota based incentives and building an enabling r d ecosystem have a much higher impact on the growth of offshore wind energy for india this paper fills the gap of absence of an empirically tested framework on offshore wind energy policy for india

energy security in china a quantitative analysis and policy implications abstract this study aims to examine how china s energy security has changed over 30 years of reform and the opening period it constructs a 4 as quantitative evaluation framework the availability of energy resources the applicability of technology the acceptability by society and the affordability of energy resources the quantitative results show that china s energy security was at its best during the sixth fyp period 1981 1985 but then deteriorated until it hit higher levels between 1995 and 2005 however it was still lower than the level reached during the sixth fyp period during the eleventh fyp period 2006 2010 the energy security situation deteriorated again differences in policy priority over the study period appear to affect the country s energy security status this study suggests that china needs to develop renewable energy resources on a large scale and pay more attention to emissions control to reverse the downward trend in energy security

implementation of first best allocations via generalized tax schedules abstract the classical problem of optimal taxation introduced by j mirrlees rev econ stud 38 1971 175 208 is addressed and it is argued that by using generalized tax schedules i e schedules which depend not only on individual income but also on the whole profile of incomes announced by the society a planner can implement any pareto optimum which stands in great contrast with the set of second best pareto optima attainable via classical tax schedules the mechanism relies crucially on the fixed probability distribution of characteristics and on a finite number of agents journal of economic literature classification numbers d78 d82 h21

envisaging feed in tariffs for solar photovoltaic electricity european lessons for canada abstract while it is widely agreed that support schemes need to be put in place to promote the use of renewable electricity there is less consensus as to what are the best kinds of strategies to use what is attracting increasing attention in canada is a system of renewable portfolio standards in this all power suppliers are under an obligation to ensure that a certain percentage of the electricity they generate is from renewable resources they can either generate that electricity themselves or purchase green certificates from those who have used renewables to generate electricity recent experience from europe however suggests that a whole hearted commitment to this single strategy could be premature and potentially damaging for the development of all kinds of renewable electricity in canada solar photovoltaics included on the other side of the atlantic ocean the use of so called feed in tariffs that is an obligation for utilities to purchase at a set price the electricity generated by any renewable energy resource is widely credited with accelerating the development of renewable electricity in many countries the purpose of this article is to reflect upon this european experience with feed in tariffs to stimulate discussions regarding what promise they might hold for the development of solar photovoltaic electricity in canada the article is divided into three main sections in the first section policies to promote renewable electricity presently in place in different parts of canada are reviewed attention is then focused more specifically in the second section of this article upon feed in tariffs after defining and describing this alternative system experiences in the countries of the european union are reviewed the main strengths and weaknesses of feed in tariffs in the european experience are also examined the focus then moves back to canada in the third section of the article in this a system of feed in tariffs is proposed for the province of ontario in order to provide just one example of the kind of support that could be forthcoming

wind farm investment risks under uncertain cdm benefit in china abstract china has set an ambitious target to increase its wind power capacity by 35 gw from 2007 to 2020 the country s hunger for clean power provides great opportunities for wind energy investors however risks from china s uncertain electricity market regulation and an uncertain energy policy framework mainly due to uncertain clean development mechanism cdm benefits prevent foreign investors from investing in china s wind energy the objectives of this paper are to 1 quantify wind energy investment risk premiums in an uncertain international energy policy context and 2 evaluate the impact of uncertain cdm benefits on the net present values of wind power projects with four scenarios this study simulates possible prices of certified emissions reductions cers from wind power projects project net present values npvs have been calculated the project risk premiums are drawn from different and uncertain cer prices our key findings show that uncertain cdm benefits will significantly affect the project npvs this paper concludes that the chinese government needs revising its tariff incentives most likely by introducing fixed feed in tariffs fits and re examining its cdm granting policy and its wind project tax rates to facilitate wind power development and enable china to achieve its wind energy target

between fragmented authoritarianism and policy coordination creating a chinese market for wind energy abstract the chinese grid connected wind energy sector has undergone a number of fundamental changes during its 20 years of existence the scope of this article is to track the reforms of the energy bureaucracy and its policy approach on the one hand and changes in wind energy installations on the other by comparing three historically distinct phases of wind energy in china it is shown how policy reforms have changed largely from a state of fragmented authoritarianism towards policy coordination in the initial phase 1986 1993 wind energy was expanding very slowly with disjointed policy making and in the incremental phase 1994 1999 the energy authorities were in dispute over the strategy and launched conflicting policy initiatives with poor results in wind energy output the latest coordinated phase 2000 2006 however developed a coherent renewable energy agenda and policy regime for the wind power sector it is found that this phase with coordinated market regulations and incentives has helped give birth to a take off in chinese wind energy installations and substantial cost reductions although the latter is threatening the profitability of wind farms the article contributes to the academic debate over the role of policy making in renewable energy development and argues that china should continue and improve the coordination of regulations and incentives

innovation in the energy sector the role of fossil fuels and developing economies abstract this paper analyzes the effects of fossil fuel rents on r d expenditures and patent grants in the field of energy related technology we argue that an increasing share of fossil fuel rents lessens the innovation of new energy technologies we consider a sample of countries beyond the common selection of oecd members and investigate innovation efforts in the energy sector of 116 countries from 1980 to 2012 we observe the gradually growing influence of resource abundant countries on global r d expenditures and find that increasing fossil fuel rents have a negative effect on patent grants this study contributes to the ongoing debate concerning the potential effects of resource abundance more importantly it increases our understanding of innovation activities within the energy sector and further underscores the need to extend future research to countries that have not been taken into account thus far

the rural non farm sector issues and evidence from developing countries abstract the rural non farm sector has traditionally been viewed as a low productivity sector which produces low quality goods it is often expected to wither away as a country develops recent years have seen a shift away from this position towards recognition that the rural non farm sector can and often does contribute to economic growth rural employment poverty reduction and a more spatially balanced population distribution this paper reviews the literature on the conceptual and empirical underpinnings of this more recent perspective focussing on the experience in developing countries the paper documents the size and heterogeneity of the sector pointing to evidence that in many countries the sector is expanding rather than declining the issues associated with measuring the sector s economic contribution are discussed followed by empirical assessments for several countries and regions the distributional impact of non farm earnings is examined and it is found that a pro poor impact while by no means inevitable can be considerable the sector s trajectory over time in different settings is reviewed and the scope for and experience of various policy interventions is discussed

challenges for r d and innovation in energy abstract in recent years there has been a growing interest in the role of r d and innovation in energy efficiency and dealing with climate change to improve our knowledge in these matters a workshop was organized in barcelona spain in january 2014 this introduction to the special issue first presents some insights from the literature on challenges for r d and innovation in energy the second section summarises the articles from this workshop that make up this special issue and that provide new insights into innovation in energy all the articles include energy policy recommendations based on the empirical analyses carried out

policies and market factors driving wind power development in the united states abstract in the united states there has been substantial recent growth in wind energy generating capacity with growth averaging 24 percent annually during the past five years about 1700 mw of wind energy capacity was installed in 2001 while another 410 mw became operational in 2002 during 2003 development activity has remained strong with an estimated 1600 mw of capacity installed with this growth an increasing number of states are experiencing investment in wind energy projects currently about half of all states host at least one wind power project this paper explores the key factors at play in the 12 states in which a substantial amount of wind energy capacity has been developed or planned some of the factors that are examined include policy drivers such as renewable portfolio standards rps federal and state financial incentives as well as market drivers such as consumer demand for green power natural gas price volatility and wholesale market rules

world crude oil and natural gas a demand and supply model abstract this paper examines world markets for crude oil and natural gas over the period 1918 1999 it analyzes the time series properties of output and prices and estimates demand and supply elasticities during 1918 1973 and 1973 1999 oil and gas prices were stable during the first period they became volatile afterwards reflecting deep changes in the market structure following the oil shock in 1973 demand price elasticities were too low however demand income elasticities were high supply price elasticities were also too low the elasticity estimates help to explain the market power of the oil producers and price volatility in response to shocks and corroborate elasticity estimates in energy studies

market power and market change in the u s automobile industry two of their number the companies difficulties are generally attributed to oil price increases economic recessions increasing government regulation and changing cost conditions relative to foreign producers less often recognized however is the crucial underlying role of monopoly power in the industry and in particular the long standing dominance of general motors the concentration of the automobile market this paper will argue has led to distortions of decision making which rendered the companies vulnerable to outside forces and ultimately induced responses that proved damaging to the entire u s industry

the impact of r d on innovation for wind energy in denmark germany and the united kingdom this paper examines the impact of public research and development r d support on cost reducing innovation for wind turbine farms in denmark germany and the united kingdom uk first we survey the literature in this field the literature indicates that in denmark r d policy has been more successful than in germany or the uk in promoting innovation of wind turbines furthermore such studies point out that subsidy induced capacity expansions were more effective in the uk and denmark in promoting cost reducing innovation than in germany the second part of the paper describes the quantitative analysis of the impact of r d and capacity expansion on innovation this is calculated using the two factor learning curve 2flc model in which investment cost reductions are explained by cumulative capacity and the r d based knowledge stock time series data were collected for the three countries and organized as a panel data set the parameters of the 2flc model were estimated focusing on the homogeneity and heterogeneity of the parameters across countries we arrived at robust estimations of a learning by doing rate of 5 4 and a learning by searching rate of 12 6 the analysis underlines the homogeneity of the learning parameters enhancing the validity of the 2flc formulation

polices for increasing energy efficiency thirty years of experience in oecd countries energy efficiency improvement was an important phenomenon in the global energy balance over the past 30 years without energy efficiency improvements the oecd nations would have used approximately 49 more energy than was actually consumed as of 1998 this paper first reviews energy intensity trends for the major oecd nations since 1973 considering how much of the overall reduction in e gdp was due to energy efficiency improvement and how much was due to structural change the bulk of the paper examines the energy efficiency policies and programs adopted in japan united states and western europe commenting on their effectiveness and energy savings impacts where possible the paper also reviews the energy efficiency policies and programs adopted in california this experience shows that well designed policies can result in substantial energy savings as demonstrated in the united states where nine specific policies and programs reduced primary energy use in 2002 by approximately 11 substantial energy savings also occurred in japan some european countries and in the electricity sector in california

induced innovation and energy prices this paper uses u s patent data from 1970 to 1994 to study the impact of energy prices on energy efficient innovations theories of technological change have focused both on demand side factors which spur innovative activity by increasing the value of new innovations and supply side factors such as scientific advancements that make new innovations possible data on demand side factors are easily obtained but data on supply side factors that influence innovation are not readily available this paper uses patent citations as a measure of the usefulness of the existing base of scientific knowledge citations to previous patents are used to construct productivity estimates which measure the usefulness of the existing stock of knowledge to inventors in a given energy field for any given year these estimates are then combined with data on demand side factors to estimate a model of induced innovation in energy technologies the results indicate that both energy prices and the supply of knowledge have strongly significant positive effects on innovation the paper concludes with a discussion of the implication of this work for environmental policy

is democracy good for the poor many scholars claim that democracy improves the welfare of the poor this article uses data on infant and child mortality to challenge this claim cross national studies tend to exclude from their samples nondemocratic states that have performed well this leads to the mistaken inference that nondemocracies have worse records than democracies once these and other flaws are corrected democracy has little or no effect on infant and child mortality rates democracies spend more money on education and health than nondemocracies but these benefits seem to accrue to middle and upper income groups

coordination failures and government policy a model with applications to east asia and eastern europe abstract poor countries must specialize in standardized labor intensive commodities middle income countries may have a richer menu of options if their labor force is reasonably well educated and skilled the multiplicity of equilibria is due to a coordination problem inherent in activities that require specialized inputs if no intermediate inputs are presently produced there may be little incentive for any single firm to do so on its own the economy may get stuck in a low wage low tech equilibrium an investment subsidy or a minimum wage policy can enhance welfare by moving the economy to a superior equilibrium

alternatives to coal and candles wind power in china china is in a unique position to be able to exploit her vast wind resources to satisfy both the rapidly growing energy demand which fuels her economy as well as needs of approximately 72 million people who live in rural areas and have no access to conventional electricity services china mainly through the e orts of the inner mongolia autonomous region has already successfully disseminated over 150 000 small scale wind electric generators which power households in rural areas through a well coordinated combination of local research and development technology transfer industry support end user incentives and an infrastructure for information dissemination and technical training in this paper we review china s utilization of wind energy and discuss how it can be increased for both rural electri cation and the rapidly growing power sector we nd that novel approaches in technical implementation of wind power use may help to better meet china s needs use of hybrid systems may help to provide higher quality more reliable power for rural households and villages than is currently provided through wind only systems grid connected wind power which currently is more costly and less reliable than coal power can become cost competitive and more reliable through local mass production of wind turbines combined with storage systems we examine governmental support through policy infrastructure development and nancial incentives that have fostered the successes of dissemination of small scale wind turbines and also the support or lack thereof that has hindered commercial development of large scale wind power we nd that a better policy and regulatory framework is the most important measure that china can take to increase the use of this indigenous clean resource 2000 elsevier science ltd all rights reserved

implementing coordinated team play abstract this note studies a moral hazard model of joint production in which there are strong gains to coordination the mechanism we propose for resolving the tacit collusion problem that arises in our setting makes use of at will contracts which provide the agents with the option to quit at any time journal of economic literature classification numbers c72 d82

sectoral systems of innovation and production the concept sectoral system of innovation and production provides a multidimensional integrated and dynamic view of sectors it is proposed that a sectoral system is a set of products and the set of agents carrying out market and non market interactions for the creation production and sale of those products a sectoral systems has a specific knowledge base technologies inputs and demand agents are individuals and organizations at various levels of aggregation they interact through processes of communication exchange co operation competition and command and these interactions are shaped by institutions a sectoral system undergoes change and transformation through the co evolution of its various elements 2002 elsevier science b v all rights reserved

fostering a renewable energy technology industry an international comparison of wind industry policy support mechanisms this article examines the importance of national and sub national policies in supporting the development of successful global wind turbine manufacturing companies we explore the motivations behind establishing a local wind power industry and the paths that different countries have taken to develop indigenous large wind turbine manufacturing industries within their borders this is done through a cross country comparison of the policy support mechanisms that have been employed to directly and indirectly promote wind technology manufacturing in 12 countries we find that in many instances there is a clear relationship between a manufacturer s success in its home country market and its eventual success in the global wind power market whether new wind turbine manufacturing entrants are able to succeed will likely depend in part on the utilization of their turbines in their own domestic market which in turn will be influenced by the annual size and stability of that market consequently policies that support a sizable stable market for wind power in conjunction with policies that specifically provide incentives for wind power technology to be manufactured locally are most likely to result in the establishment of an internationally competitive wind industry

innovation and the international diffusion of environmentally responsive technology abstract new evidence is presented on environmental innovation and diffusion over the 1970s and 1980s at a global level a substantial amount of innovations occurred in the united states japan and germany the share of environmental patents in all patents varied between 0 6 and 3 and as such was higher than the corresponding share of pollution abatement expenditure in gdp japanese environmental innovation rates were consistently high certain plausible connections between environmental regulation and innovation also emerge across these three countries and over time innovation responded to pollution abatement expenditure an indicator of the severity of environmental regulations environmental patenting rates in developing countries were also high reaching 2 in many years in brazil developing country innovators obtained a non trivial number of patents most of which appear geared towards adapting imported technologies to local conditions however domestic innovation was only one path to new technologies imports of disembodied environmental technologies foreign patents registered in developing countries were substantial foreign patents were typically important or generic patents evidence also suggests that such patents protected intellectual property in equipment exported developing countries especially in east asia often chose to obtain technologies embodied in pollution abatement equipment

nash equilibrium and welfare optimality if is a set of social alternatives a social choice rule scr assigns a subset of a to each potential profile of individuals preferences over a where the subset is interpreted as the set of welfare optima a game form or mechanism implements the social choice rule if for any potential profile of preferences 1 any welfare optimum can arise as a nash equilibrium of the game form implying in particular that a nash equilibrium exists and 2 all nash equilibria are welfare optimal the main result of this paper establishes that any scr that satisfies two properties monotonicity and no veto power can be implemented by a game form if there are three or more individuals the proof is constructive

new brand positioning and pricing in an oligopolistic market the positioning and pricing of a new brand requires knowledge about the relationship of both demand and cost with potential attribute locations and prices this paper addresses this problem and illustrates it in the context of the automobile market multi attribute expected utility theory which allows for consumer uncertainty about the brands is used to model individuals behavior attribute weights are estimated from market survey data on brands attributes and preferences using linmap as an estimation procedure expected utility is then updated using the multinomial logit model and choice data to account for the observation that stated preferences do not perfectly reflect the eventual choice it is hypothesized that when faced with an actual choice price may become more important to the consumer while other attributes may become more or less important than is reflected in stated preferences the resulting estimated choice probabilities are aggregated to form demand functions facing each brand which depend on all brands prices and attribute space locations assuming there is a price equilibrium in the existing market and that firms have the same variable cost function variable costs as a function of a brand s attribute levels are estimated given the demand and cost functions facing each firm including the potential new entrant the profit maximizing positioning and pricing of a new brand is analyzed using a game theoretic approach a solution is sought under the assumption that incumbents react to entry by changing their prices possible approaches to the translation of the perceptual attribute positioning of the new brand to physical and engineering attributes are reviewed improvements and future extensions of the study are discussed