"With better instruments and financial incentives, we can more effectively achieve our goals. And that we actually meet the existing guidelines but also that we can do it in a more cost effective manner", says Åsa Lindman, PhD at Luleå Universityof Technology.
Encourage the dissemination of renewable technologies
Åsa Lindman recently presented her thesis Essays on Renewable Energy Technology Development and Voluntary Carbon Offset. The study's overall theme was to try to understand the technology development process in the sector of renewable energy technologies and identify some of the main driving forces behind it so as to be able to design instruments that encourage the spread of renewable technologies. A fundamental insight of the research is that it requires a holistic picture of instruments and guidelines to have real effects.
"The design of renewable energy technology development is a complex task to deal with and my research shows that it takes several different strategies to internalize various types of market failures. For example, there may be compelling reasons to complete an emissions price on carbon with other instruments that specifically promotes technological development", says Åsa Lindman and continues.
"Among other things, public investment in research and development of energy technologies are required. The economic incentives are not enough by itself so the technical progress must be encouraged at all stages of policy instruments to have the desired effect".
The development should be driven by public funding
Åsa Lindman says that the energy technology development can not only be driven by the free market, but also should be financed by public funds.
"When new knowledge is generated it can be used by several players at a low cost and the producer of knowledge also contributes to benefits that are not exclusively to be used by the inventor himself, even if he might bear the full cost of the investment. Therefore, it may be important to support the introduction of new technologies on the market from public sources", says Åsa Lindman.