Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75429
Authors: 
De Cian, Enrica
Sferra, Fabio
Tavoni, Massimo
Year of Publication: 
2013
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 59.2013
Abstract: 
This paper examines the dynamics of energy investments and clean energy Research and Development (R&D) using a scenario-based modeling approach. Starting from the global scenarios proposed in the RoSE model ensemble experiment, we analyze the dynamics of investments under different assumptions regarding economic and population growth as well as availability of fossil fuel resources, in the absence of a climate policy. Our analysis indicates that economic growth and the speed of income convergence across countries matters for improvements in energy efficiency, both via dedicated R&D investments but mostly through capital-energy substitution. In contrast, fossil fuel prices, by changing the relative competitiveness of energy sources, create an economic opportunity for radical innovation in the energy sector. Indeed, our results suggest that fossil fuel availability is the key driver of investments in low carbon energy innovation. However, this innovation, by itself, is not sufficient to induce emission reductions compatible with climate stabilization objectives.
Subjects: 
Technological change and innovation
Energy investments
R&D Investments
Fossil fuel availability
Fossil fuel prices
Energy Intensity
Carbon Intensity
JEL: 
O13
Q43
Q54
Q55
Document Type: 
Working Paper

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