Diffusion of clean technologies: patterns, mechanisms and future challenges

Eugenie Dugoua and Joëlle Noailly

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper examines the patterns and mechanisms of global clean technology diffusion over the last two decades. We document four stylized facts: uneven sectoral progress favoring power and light transport; China’s dominance in innovation and manufacturing; the role of modularity in driving cost declines; and limited adoption in developing economies. Through case studies of solar, electric vehicles, and hydrogen, we analyze how policy and infrastructure enable scale. Finally, we assess emerging challenges for the next phase of diffusion, including critical mineral constraints, artificial intelligence, and geopolitical fragmentation.

Keywords: clean technology diffusion; climate change mitigation; renewable energy; industrial policy; solar photovoltaics; electric vehicles; hydrogen (search for similar items in EconPapers)
JEL-codes: O33 Q55 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2026-03
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