Export orientation and domestic electricity generation: Effects on energy efficiency innovation in select sectors

Johannes Urpelainen

Energy Policy, 2011, vol. 39, issue 9, 5638-5646

Abstract: Why are some countries developing many energy efficiency innovations, while others are lagging behind? I argue that export orientation and electricity at low variable cost from nuclear and hydropower plants have an interactive effect on energy efficiency innovation. Export-oriented countries have strong incentives to invest in energy efficiency innovation, as they are in a position to export these technology innovations for global markets. But if inexpensive electricity is supplied in a country, the domestic demand for energy efficiency innovation is missing, and so the home market cannot serve as a springboard for international commercialization. I test this theory against international patent data on energy efficiency innovation in insulation, heating, and lighting for 22 OECD countries, 1991-2007. The statistical analysis indicates that export orientation has large positive effects on energy efficiency innovation in countries that do not rely on nuclear and hydroelectricity.

Keywords: Energy; efficiency; Technology; innovation; Electricity; generation (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (12)

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