Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Who is in the driver's seat?: Insights into the mixed outcomes of renewable policy instruments in the electricity industry
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Sustainability and Industrial Dynamics. Universidad Politecnica de Madrid.ORCID iD: 0000-0003-3146-2307
2015 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

There is consensus about a need to reduce the amount of green-house gas emission in the electricity industry to be able to deal with the probable consequences of climate change. This necessitates extensive investments in technologies used to generate electricity from renewable energy sources (RES-E). To stimulate such investments, governments have enacted several policy instruments. However, the outcomes of these instruments are mixed. This thesis delineates two reasons for the different effects of policies. First, the development of the renewable electricity industry hinges on a set of driving forces that differ across regions, through the years and for different actors. Given that, policy instruments are not only driving forces behind the renewable electricity industry and can thus by themselves not explain its development.

Second, RES-E investors comprise a heterogeneous group of actors whose perceptions of business opportunities vary substantially and are also based on a variety of driving forces. Hence, RES-E investors may react differently to changes within the electricity industry, as well as to government policies that aim to create a more sustainable electricity industry. Garnering a better understanding of these reactions is therefore important as they influence the pace of transition to a more sustainable electricity industry.

This is an interdisciplinary study that brings together several theories and research areas. First, using the technological innovation system perspective, it identifies systemic driving forces behind the development of the renewable energy industry that will also accelerate the electricity industry transitions to sustainability. To gain a better insight into the role of policy instruments as such as well as in relation to other driving forces, this thesis explores what factors are accounted for in attempts to assess the instruments’ performance. Second, drawing on sustainability transition studies and dynamic capability theories, this thesis seeks to explore which firms are willing to contribute—and capable of contributing—to sustainability transitions in the electricity industry. The thesis argues that good forecast and policy plans need to be built on a solid understanding of the firms that change the structure of the electricity industry through their RES-E investments.

This thesis leverages a mix of qualitative and quantitative methods. Empirical data are collected through two extensive literature reviews on the driving forces of the renewable energy industry development in Europe, a longitudinal case study on a European multinational energy company, and statistical analyses of data on RES-E investors in Sweden. The thesis makes theoretical, methodological, and empirical contributions to this area of research. The findings explain what motivates the development of the renewable energy industry; who competes in the renewable electricity industry; and what the future renewable electricity industry may look like. The thesis outlines implications for policies, for managers as well as for renewable energy technologies. 

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2015. , xi, 115 p.
Series
TRITA-IEO, ISSN 1100-7982 ; 2015:12
Keyword [en]
Electricity from renewable energy sources, sustainability transitions, actors, institutions, dynamic capabilities, energy policy, investors, technological innovation system
National Category
Other Social Sciences not elsewhere specified
Research subject
Energy Technology; Industrial Engineering and Management
Identifiers
URN: urn:nbn:se:kth:diva-179723ISBN: 978-91-7595-814-9 (print)OAI: oai:DiVA.org:kth-179723DiVA: diva2:886925
Public defence
2016-02-12, F3, Lindstedtsvägen 26, KTH, Stockholm, 09:00 (English)
Opponent
Supervisors
Note

This research was conducted within the framework of the “European Doctorate in Industrial Management” - EDIM - which is funded by The Education, Audiovisual and Culture Executive Agency (EACEA) of European Commission under Erasmus Mundus Action 1 programme. 

QC 20160119

Available from: 2016-01-19 Created: 2015-12-22 Last updated: 2016-02-12Bibliographically approved
List of papers
1. What drives the development of renewable energy technologies?: Toward a typology for the systemic drivers
Open this publication in new window or tab >>What drives the development of renewable energy technologies?: Toward a typology for the systemic drivers
2014 (English)In: Renewable & sustainable energy reviews, ISSN 1364-0321, E-ISSN 1879-0690, Vol. 38, 834-847 p.Article, review/survey (Refereed) Published
Abstract [en]

At present, governments are embarking on the ambitious undertaking of increasing their countries' market share of renewable energy. Political ambitions, however, are just one of the driving forces for energy companies' to engage in innovative climate projects. Energy companies' perceptions of business opportunities are dependent on a set of factors that influence their innovation ambitions. This research operationalizes previous work on the main drivers of the establishment of Renewable Energy Technologies (RETs), with the aim of presenting an overview of the typical systemic drivers within a technological innovation system (TIS) framework. This leads to the proposal of a comprehensive typology and categorization of drivers of RETs. The typology is validated empirically by analyzing data on the development of four types of RETs (wind, solar, biomass and wave energy) in eight European countries (EU-7 and Ireland). The study's results shed light on the multilateral drivers behind the development of RETs. Furthermore, a cross-case comparative study reveals the differences between drivers of RETs and the patterns of these drivers in different countries.

Keyword
Technological innovation system, Renewable energy technology, Drivers, Barriers and climate change
National Category
Energy Engineering
Identifiers
urn:nbn:se:kth:diva-154371 (URN)10.1016/j.rser.2014.07.023 (DOI)000341676100066 ()2-s2.0-84905024020 (Scopus ID)
Note

QC 20141021

Available from: 2014-10-21 Created: 2014-10-20 Last updated: 2017-12-05Bibliographically approved
2. When outcomes are the reflection of the analysis criteria: A review of the tradable green certificate assessments
Open this publication in new window or tab >>When outcomes are the reflection of the analysis criteria: A review of the tradable green certificate assessments
(English)Manuscript (preprint) (Other academic)
Abstract [en]

The tradable green certificates (TGC) framework is a prevalent policy-support scheme enacted to stimulate investments in electricity from renewable energy sources (RES-E). In several countries, including Sweden and Norway, the TGC framework is currently under reevaluation. In this process, academic literature plays a crucial role by assessing the outcomes of this policy framework. The outcomes, however, are often limited by the analysis criteria, which reflect what has been accounted for or disregarded and also stress what is considered a successful outcome. Given the importance of such criteria, this paper presents an extensive and systemic literature review of academic publications assessing the performance of the TGC framework using the Web of Science database. The findings are to provide an overview of the publications’ analysis criteria and outline their outcomes. We also provide descriptive statistics for the publications and examine the average citation record of the publications that use various analysis criteria in order to explore their relative impact on later studies. These findings can help policy makers place the assessments into perspective when reevaluating a country’s TGC system. They also suggest several intriguing directions for future studies in this field. 

Keyword
Tradable Green Certificate system; electricity industry; research; investors.
National Category
Other Social Sciences not elsewhere specified
Research subject
Energy Technology
Identifiers
urn:nbn:se:kth:diva-179724 (URN)10.1016/j.rser.2016.04.037 (DOI)
Note

QC 20160818

Available from: 2015-12-22 Created: 2015-12-22 Last updated: 2016-11-01Bibliographically approved
3. Do the strategic decisions of multinational energy companies differ in divergent market contexts?: An exploratory study
Open this publication in new window or tab >>Do the strategic decisions of multinational energy companies differ in divergent market contexts?: An exploratory study
2016 (English)In: Energy Research & Social Science, ISSN 2214-6296, E-ISSN 2214-6326, Vol. 11, 9-18 p.Article in journal, News item (Refereed) Published
Abstract [en]

In the European energy industry, different countries’ national institutional frameworks have evolved divergently in response to increasing concerns about environmental issues. This paper explores the influence of these divergent national institutional frameworks on the strategic behavior of multinational company (MNC) subsidiaries. Differences in MNC subsidiaries’ strategic decisions in different countries, regardless of common capabilities and strategies, illustrate the importance of this influence. The paper focuses on the strategic decisions that determine which energy technology MNCs choose to acquire or invest in. MNCs are the predominant force in the European energy industry, and our understanding of their strategic decisions regarding choice of technology is an essential step in achieving a low-carbon energy industry. Our analysis is based on a longitudinal case study of Vattenfall, a Swedish multinational energy company. Findings confirm that even in the energy industry—a capital-intensive, national, and institution-based industry—MNCs follow their core global strategy to such an extent that it may prevail over local institutional considerations. Nevertheless, as European energy markets become deregulated and renewable energy matures, local institutions are likely to play a more dominant role, and MNCs will increasingly need to comply with local institutions’ guidelines. The paper offers recommendations for policymakers and several managerial implications.

Place, publisher, year, edition, pages
Elsevier, 2016
Keyword
Multinational energy companies, Strategic responses, Institutions, Climate concerns
National Category
Social Sciences
Research subject
Energy Technology
Identifiers
urn:nbn:se:kth:diva-177457 (URN)10.1016/j.erss.2015.08.009 (DOI)000379430400002 ()2-s2.0-84941921028 (Scopus ID)
Note

QC 20151202

Available from: 2015-11-20 Created: 2015-11-20 Last updated: 2017-12-01Bibliographically approved
4. Which investors contribute to the transition to a more sustainable electricity industry?: Evidence of investments in Swedish wind power
Open this publication in new window or tab >>Which investors contribute to the transition to a more sustainable electricity industry?: Evidence of investments in Swedish wind power
(English)Manuscript (preprint) (Other academic)
Abstract [en]

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. 

Keyword
Investors; dynamic capabilities; energy policy; wind power; incumbents; new entrants.
National Category
Other Social Sciences not elsewhere specified
Research subject
Industrial Engineering and Management
Identifiers
urn:nbn:se:kth:diva-179726 (URN)
Note

QS 2016

Available from: 2015-12-22 Created: 2015-12-22 Last updated: 2016-02-18Bibliographically approved
5. Renewable energy investors in Sweden: a cross-subsector analysis of dynamic capabilities
Open this publication in new window or tab >>Renewable energy investors in Sweden: a cross-subsector analysis of dynamic capabilities
2015 (English)In: Utilities Policy, ISSN 0957-1787, E-ISSN 1878-4356, Vol. 37, 46-57 p.Article in journal (Refereed) Published
Abstract [en]

Tradable Green Certificates (TGC) schemes are among the prevalent policy frameworks to promote investments in Electricity from Renewable Energy Sources (RES-E). However, a technology-neutral design of the TGC system is coupled with uneven competition across renewable energy subsectors. The cost of RES-E technologies is often identified as the primary cause for this unevenness. This paper sheds light on additional explanatory factors for uneven competition, illustrating that investment paths vary across subsectors. Such paths can influence investor dynamic capabilities to explore new market opportunities and reinforce future investment behavior in each subsector. Empirical data from the Swedish TGC system for wind power, biopower, and hydropower are used for this analysis. The results indicate that investor dynamic capabilities related to cumulative experience and industrial diversification vary significantly across renewable energy subsectors. The findings are relevant to TGC program design.

Keyword
Electricity from renewable energy sources (RES-E), Investors, Investment paths, Comparative analysis, Cumulative experience, Industrial diversification
National Category
Social Sciences
Research subject
Energy Technology
Identifiers
urn:nbn:se:kth:diva-177459 (URN)10.1016/j.jup.2015.09.008 (DOI)000367110700005 ()2-s2.0-84949525327 (Scopus ID)
Note

QC 20151202. QC 20160121

Available from: 2015-11-20 Created: 2015-11-20 Last updated: 2017-12-01Bibliographically approved

Open Access in DiVA

fulltext(4204 kB)177 downloads
File information
File name FULLTEXT02.pdfFile size 4204 kBChecksum SHA-512
2d1485eb66749d5bf98065e46b54edb366754e8feb85314cc747eaba5e2954874ba6732e52f2d3ed2d405eeef598364d798b5ab5810d2ada8879284fd3466753
Type fulltextMimetype application/pdf

Authority records BETA

Darmani, Anna

Search in DiVA

By author/editor
Darmani, Anna
By organisation
Sustainability and Industrial Dynamics
Other Social Sciences not elsewhere specified

Search outside of DiVA

GoogleGoogle Scholar
Total: 177 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

isbn
urn-nbn

Altmetric score

isbn
urn-nbn
Total: 389 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf