The impact of the EU ETS on the sectoral innovation system for power generation technologies – Findings for Germany

This paper provides an overview of early changes in the sectoral innovation system for power generation technologies which have been triggered by the European Emission Trading System (EU ETS). Based on a broad definition of the sector, our research analyses the impact of the EU ETS on the four build...

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Bibliographic Details
Published in:Energy policy 2010-12, Vol.38 (12), p.7639-7652
Main Authors: Rogge, Karoline S., Hoffmann, Volker H.
Format: Article
Language:English
Subjects:
Air pollution caused by fuel industries
Applied sciences
Carbon
Carbon dioxide
Corporate culture
Culture
Economics
Electricity generation
Emission
Emissions trading
Energy
Energy economics
Energy industry
Energy policy
Energy resources
Energy. Thermal use of fuels
Environmental economics
EU emission trading system (EU ETS)
EU emission trading system (EU ETS) Innovation system Power sector
European Union
Exact sciences and technology
General, economic and professional studies
General. Regulations. Norms. Economy
Germany
Grounds
Impact analysis
Innovation
Innovation system
Power generation
Power resources
Power sector
Streams
Studies
Technological change
Technological innovations
Technology
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Summary:This paper provides an overview of early changes in the sectoral innovation system for power generation technologies which have been triggered by the European Emission Trading System (EU ETS). Based on a broad definition of the sector, our research analyses the impact of the EU ETS on the four building blocks ‘knowledge and technologies’, ‘actors and networks’, ‘institutions’, and ‘demand’ by combining two streams of literature, namely systems of innovation and environmental economics. Our analysis for Germany is based on 42 exploratory interviews with experts in the field of the EU ETS, the power sector, and technological innovation. We find that the EU ETS mainly affects the rate and direction of technological change of power generation technologies within the large-scale, coal-based power generation technological regime, to which carbon capture technologies are added as a new technological trajectory. While this impact can be interpreted as the defensive behaviour of incumbents, the observed changes should not be underestimated. We argue that the EU ETS’ impact on corporate CO 2 culture and routines may prepare the ground for the transition to a low-carbon sectoral innovation system for power generation technologies.
ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2010.07.047