From Fossil Fuels to Renewables: The Role of Electricity Storage

Itziar Lazkano, Linda Nøstbakken and Martino Pelli

No 11/2016, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: We analyze the role of electricity storage for technological innovations in electricity generation. We propose a directed technological change model of the electricity sector, where innovative rms develop better electricity storage solutions, which a ect not only the relative competitiveness between renewable and nonrenewable electricity Sources but also the ease with which they can be substituted. Using a global rm-level data set of electricity patents from 1963 to 2011, we empirically analyze the determinants of innovation in electricity generation, and the role of storage in directing innovation. Our results show that electricity storage increases innovation not only in renewables but also in conventional technologies. This implies that efforts to increase innovation in storage can benefit conventional, fossil fuel- red electricity plants as well as increasing the use of renewable electricity.

Keywords: Innovation; Directed technical change; Electricity storage; Electricity markets; Power generation (search for similar items in EconPapers)
JEL-codes: O30 O40 O50 Q20 Q30 Q40 Q50 (search for similar items in EconPapers)
Pages: 62 pages
Date: 2016-05-31
New Economics Papers: this item is included in nep-ene, nep-env, nep-ino and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: From fossil fuels to renewables: The role of electricity storage (2017)
Working Paper: From Fossil Fuels to Renewables: The Role of Electricity Storage (2017)
Working Paper: From Fossil Fuels to Renewables: The Role of Electricity Storage (2016)
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