Divergence of renewable energy invention efforts in Europe: an econometric analysis based on patent counts

Jonas Grafström

doi:10.1007/s10018-018-0216-y

Abstract

The objective of this paper is to investigate the presence of convergence (or divergence) of invention efforts per capita in the renewable energy field across European Union (EU) countries. Divergence may imply a risk of a lower level of goal fulfilment regarding the share of renewable energy in the EU energy mix. This is due to free-rider issues and sub-optimal investment levels, in turn making it more expensive and cumbersome to expand renewable energy production. Convergence suggests a possible faster renewable energy goal achievement. The econometric analysis is based on patent application counts per capita for 13 EU Member States over the time period 1990–2012. The methods used draw on the economic convergence literature. First, we rely on a panel data set to test for conditional β-convergence. Moreover, a distributional dynamics approach is employed to test for σ- and γ-convergence, and analyse the intra-distributional dynamics. The results indicate conditional β- and σ-divergence in renewable energy invention capabilities across the 13 countries, thus suggesting that some EU countries tend to free-ride on the development efforts of other Member States.

Highlights

The Renewable Energy Directive (2009/28/EC) of the European Union (EU) establishes a binding target to ensure at least 20% share of energy consumption from renewable sources by the year 2020
In October 2014, the EU further enhanced the scope of its climate and energy targets for both 2020 and 2030; its 2030 policy framework sets a minimum target of 27% in respect to renewable energy sources as well as energy savings by 2030 (European Commission 2014)
6 Concluding remarks and implications. The objective of this was to investigate the presence of convergence in the per capita patenting activities in the renewable energy field across European countries

Summary

Introduction

The Renewable Energy Directive (2009/28/EC) of the European Union (EU) establishes a binding target to ensure at least 20% share of energy consumption from renewable sources by the year 2020 To achieve this overall target, the EU Member States have committed themselves to national renewables’ targets (European Commission 2015a). The renewable energy outcomes in individual EU Member States are heterogeneous, with substantial capacity and patenting increase in some countries and far more modest developments in others (IEA 2014a; Strömberg 2013).. The renewable energy outcomes in individual EU Member States are heterogeneous, with substantial capacity and patenting increase in some countries and far more modest developments in others (IEA 2014a; Strömberg 2013).1 These diverging pathways may give rise to concerns about an unfair burden-sharing among EU countries. Such concerns are likely to be a thorny issue, if they are accompanied by diverging efforts to develop the associated new technology, e.g., through private as well as public research and development (R&D) activities

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Results

Conclusion