Several market failures, as well as other technical, economic and regulatory barriers to the market
penetration of clean energy technologies result in under-investment of private innovators in RD&D.
Therefore, public support is needed in order to induce innovations. Policy tools creating market
conditions that are attractive for the exploitation of clean technologies (market pull) must be combined
with other tools directly supporting the development of these technologies through the provision of
public funds (technology push). Thereby, financing policy instruments should be chosen so that their
characteristics match with those of the specific innovation process being targeted at the same time that
social welfare is maximized. We develop an analytical framework to define the form of public support
and to provide recommendations on the optimal choice of both technology push and market pull
instruments.
This policy brief, written in May 2024, provides an overview of the international carbon market landscape and describes the status quo in terms of the degree of its integration and [...]
Aviation is crucial for Europe's mobility, connectivity and competitiveness. With over 900 million air passengers travelling to, from and within the European Union each year, Europe makes up a third [...]
Lack of interoperability is increasingly becoming a significant issue in the electricity sector. The need to integrate a growing amount of distributed resources, such as renewable energy sources and electric [...]
The energy transition calls for a rapid expansion of electricity grids at both transmission and distribution levels. Technological progress and digitalisation offer new solutions to system needs that can increase [...]
The interaction of “Contracts”, “Markets” and “Law and Regulation” have informed the economic analysis of market economies for over 40 years. One of the main lessons learnt is that (contracts), [...]
Rail transport and inland waterways are crucial to achieve the objectives outlined in the Green Deal agenda. These aims include a 55% reduction in greenhouse gases by 2030 and attaining [...]
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