Energy subsidies and energy technology innovation: Policies for polygeneration systems diffusion

Shahadat Hosan, Md Matiar Rahman, Shamal Chandra Karmaker and Bidyut Baran Saha

Energy, 2023, vol. 267, issue C

Abstract: Many countries have considered energy subsidies, with both successes and failures. Energy subsidies often have failed to achieve their stated objective of advancing national economic, social, and technological progress. Budgetary savings from the removal of energy subsidies and the resulting upsurge in energy prices may induce the adoption of innovative technologies in a country. The economic impact of energy subsidies has been analyzed for many countries in the literature. However, this issue with energy technology innovation using panel analysis has not yet been thoroughly investigated. Therefore, this study is intended to discover the effect of energy subsidies on energy technology innovation in the 25 highest energy subsidy-providing countries for the period of 2010–2020, employing advanced econometric approaches. The results confirm that energy subsidies and energy technology innovation are significantly cointegrated, and the removal of energy subsidies stimulates technological innovation, which induces the adoption of a renewable-based polygeneration system. The policy implication of this paper suggests going for further innovations in energy subsidy reforms for sustainability and technological innovation for polygeneration that may contribute to clean, sustainable, and affordable energy for all (SDG-7).

Keywords: Cointegration; Energy price; Energy subsidies; Polygeneration; Technological innovation (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:267:y:2023:i:c:s0360544222034880

DOI: 10.1016/j.energy.2022.126601

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