The Organization for Economic Co-operation and Development (OECD) publication investigates the impact of climate mitigation policies and the investment environment on the flow of investments in renewable energies and relevant patent activities focusing on countries of the OECD and G20.
Among other policy implications, the paper highlights the need for policy makers to enhance the quality of the investment environment and consider cross-effects between targeted climate policies and broader investment conditions for both investment in the deployment or renewables and innovation.
June 2017: The Organisation for Economic Co-operation and Development (OECD) has released a working paper showing that investment and innovation in renewable energies requires not only strong climate mitigation policies, but also measures to strengthen the overall investment environment.
The paper titled, ‘The empirics of enabling investment and innovation in renewable energy,’ uses econometric analysis to investigate the impact of climate mitigation policies and the investment environment on the flow of investments in renewable energies and relevant patent activities focusing on countries of the OECD and G20. The publication presents results regarding 70 model variables describing climate mitigation policies, incentives and other policies and regulations relevant for the investment environment.
The study discusses initial policy implications, highlighting the need for policy makers to enhance the quality of the investment environment and consider cross-effects between targeted climate policies and broader investment conditions for both investment in the deployment or renewables and innovation. Other policy implications include: the need to increase explicit carbon prices to effectively mobilize investments; the importance of short-run, targeted support to the deployment of new renewable technologies until such technologies become cost-competitive; and the need to ensure that public tenders for energy projects are fair and competitive.
More detailed policy implications will be laid out in a forthcoming OECD policy paper on enabling investment and innovation in renewable energy. [Abstract][Publication: The empirics of enabling investment and innovation in renewable energy]