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Cited by 351

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The innovation impact of the EU Emission Trading System — Findings of company case studies in the German power sector

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Rogge, Karoline S., Schneider, Malte, Hoffmann, Volker H.·2011·Ecological Economics
DOI 10.1016/j.ecolecon.2010.09.032
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Abstract

This paper provides a detailed analysis of how the European Emission Trading System (EU ETS) as the core climate policy instrument of the European Union has impacted innovation. Towards this end, we investigate the impact of the EU ETS on research, development and demonstration (RD&D), adoption, and organizational change. In doing so, we pay particular attention to the relative influences of context factors (policy mix, market factors and public acceptance) and firm characteristics (value chain position, technology portfolio, size and vision). Empirically, our qualitative analysis is based on multiple case studies with 19 power generators, technology providers and project developers in the German power sector which were conducted in 2008/09. We find that the innovation impact of the EU ETS has remained limited so far because of the scheme's initial lack of stringency and predictability and the relatively greater importance of context factors. Additionally, the impact varies significantly across technologies, firms, and innovation dimensions and is most pronounced for RD&D on carbon capture technologies and organizational changes. Our analysis suggests that the EU ETS on its own may not provide sufficient incentives for fundamental changes in corporate innovation activities at a level which ensures political long-term targets can be achieved.

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Metadata

Authors
Rogge, K. S., Schneider, M., & Hoffmann, V. H.
Venue
Ecological Economics
Publisher
Elsevier BV
Published
2011-01
Volume
70
Issue
3
Pages
513-523
ISSN
0921-8009 (ISSN-L)
DOI
10.1016/j.ecolecon.2010.09.032
OpenAlex
W2040962823
Cited by
351
References
2
FWCI
31.38
Type
journal article
Language
en
Open access
green
Licence
  • www.elsevier.com/tdm/userlicense/1.0/ (tdm)
  • www.elsevier.com/legal/tdmrep-license (tdm)

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