Accelerating diffusion of climate-friendly technologies: A network perspective

Abstract

We introduce a methodology to estimate the determinants of the formation of technology diffusion networks from the patterns of technology adoption. We apply this methodology to wind energy, which is one of the key technologies in climate change mitigation. Our results emphasize that, in particular, long-term relationships as measured by economic integration are key determinants of technological diffusion. Specific support measures are less relevant, at least to explain the extensive margin of diffusion. Our results also highlight that the scope of technological diffusion is much broader than what is suggested by the consideration of CDM projects alone, which are particularly focused on China and India. Finally, the network of technological diffusion inferred from our approach highlights the central role of European countries in the diffusion process and the absence of large hubs among developing countries.