Which investors contribute to the transition to a more sustainable electricity industry?: Evidence of investments in Swedish wind power
(English)Manuscript (preprint) (Other academic)
In order to facilitate the transition to electricity industries with low CO2 emissions, it is important to understand which firms invest in renewable energy technologies, and which firms are responsive to energy policies. This study concentrates on the heterogeneous characteristics of investors in wind power that are embedded in the investors’ dynamic capabilities. The paper explores which investors respond to changes in energy policy aimed at a more sustainable electricity industry, and accordingly invest in wind power. Empirical data is collected on investments in the Swedish wind power industry and on prices in the Swedish tradable certificate system. The findings demonstrate that the cumulative wind power assets are influenced by investors’ characteristics. Investors with higher investment experience and a mixed generation portfolio whose business is dedicated to electricity generation hold a higher share of assets in wind. The results also indicate that the investors’ age in the wind power industry has a negative relation with the cumulative assets in wind, offering evidence on the important role of new entrants in this industry. This study offers insights for policy makers by showing, which investors are responsive to the certificate system and invest in wind. We also argue that a more diversified set of policies may stimulate a greater variety of firms to invest in wind power.
Investors; dynamic capabilities; energy policy; wind power; incumbents; new entrants.
Other Social Sciences not elsewhere specified
Research subject Industrial Engineering and Management
IdentifiersURN: urn:nbn:se:kth:diva-179726OAI: oai:DiVA.org:kth-179726DiVA: diva2:886406
QS 20162015-12-222015-12-222016-02-18Bibliographically approved