Investment In Clean Technology Research Articles

The role of financial markets in the energy transition: an analysis of investment trends and opportunities in renewable energy and clean technology.

The crucial role that financial markets have played in accelerating the shift to clean energy and renewable sources of energy is examined in this article. Thus, we built global essential mineral trade networks from 1999 to 2020 using a complex network technique to analyze their topological properties quantitatively. The impact of crucial mineral trade patterns on the growth of renewable energy is then examined using the dynamic econometric model, along with the mediating function of technological advancement in renewable energy. It analyzes investment patterns and possibilities in various industries while underlining the critical role that financial systems play in determining the speed and scope of the change. The research uses data from reliable sources and thoroughly analyzes the body of current literature. The data shows that investments in clean technologies and renewable energy have significantly increased recently. This increase may be ascribed to several causes, including favorable governmental regulations, falling renewable energy technology prices, and rising environmental consciousness among the general people. Venture capital, private equity, public markets, and specialist funds are just a few examples of financial markets that have been instrumental in directing funding to these industries. The report also reveals a change in how money is invested in the energy industry, with conventional investments in fossil fuels declining and investments in renewable energy growing significantly. The profitability and appeal of renewable energy projects, which are now competitive with traditional energy sources, are driving this transformation. The report also identifies new investment possibilities in clean technology, including smart infrastructure, grid modernization, and energy storage. Due to their potential to improve the effectiveness, dependability, and sustainability of energy systems, these areas are expanding. The results highlight the need to establish long-term stability and incentives for investment in the clean technology and renewable energy industries. Government assistance has considerably aided investor confidence, including carbon pricing systems, tax incentives, and subsidies for renewable energy sources. This analysis emphasizes how critical financial markets are to accelerating the energy transition. Financial markets may hasten the transition to a sustainable energy system by directing investments into clean technologies and renewable energy industries. To take advantage of the investment possibilities given by the energy transition, policymakers, investors, and industry stakeholders must work together.

How economic development promotes the sustainability targets? Role of natural resources utilization

Economic growth is essential to accomplishing sustainability goals. It is still being determined how natural resource consumption affects this connection. This study examines how natural resource exploitation links economic growth to sustainability goals. This research examines economic growth, natural resource use, and sustainability goals. We use the Generalized Method of Moments (GMM) model to explore China from 2009 to 2021. The GMM model examines how natural resource exploitation affects sustainability metrics, including greenhouse gas emissions, renewable energy uptake, and environmental quality. Technological advances, clean technology investment, and legislative frameworks also affect economic growth. This research illuminates the intricate link between economic growth, natural resource usage, and sustainability objectives. The findings emphasize the need for natural resource management for sustainable economic development and environmental protection. Understanding how natural resource consumption promotes sustainability may inform policy choices and assist in building solutions that boost economic growth while protecting the environment. This research adds empirical information on the relationship between China's economic development, natural resources, and sustainability objectives. This study helps policymakers, academics, and practitioners promote sustainable development and meet sustainability goals by explaining how natural resource consumption influences sustainability.

Does green credit financing mode with cap‐and‐trade scheme really benefit all members?

AbstractThere is a never‐ending debate about whether the cap‐and‐trade mechanism is a valid means of achieving carbon reduction. In this study, we examine it from the perspective of supply chain financing, as the cap‐and‐trade scheme appears to be an excellent solution to avoid the carbon emission requirements imposed by green credit financing services. We develop a theoretical framework for comparing three distinct kinds of financing modes: bank credit financing, green credit financing, and green credit financing with a cap‐and‐trade scheme. Based on Stackelberg game with stochastic demand, we then derive optimal outputs for the manufacturer and wholesale prices for the supplier. Counterintuitively, the green credit financing mode is less profitable for manufacturers with low investment in clean production due to stringent carbon emission requirements, yet it is advantageous for the supplier through a higher wholesale price. Conversely, the green credit financing combined with cap‐and‐trade scheme will result in a different situation in which the manufacturer will benefit from the green credit's lower interest rate, but the cap‐and‐trade mechanism will diminish the supplier's power in the Stackelberg game and reduce her profits. Finally, from the perspective of social welfare, the green credit financing mode with cap‐and‐trade scheme will not always benefit for the whole society. Even though it can improve the profit of the manufacturer and consumer surplus, it may lead to higher carbon emission and reduce profits of the supplier when the investment in clean production technology is limited.

Deep decarbonisation pathways of the energy system in times of unprecedented uncertainty in the energy sector

Unprecedented investments in clean energy technology are required for a net-zero carbon energy system before temperatures breach the Paris Agreement goals. By performing a Monte-Carlo Analysis with the detailed ETSAP-TIAM Integrated Assessment Model and by generating 4000 scenarios of the world's energy system, climate and economy, we find that the uncertainty surrounding technology costs, resource potentials, climate sensitivity and the level of decoupling between energy demands and economic growth influence the efficiency of climate policies and accentuate investment risks in clean energy technologies. Contrary to other studies relying on exploring the uncertainty space via model intercomparison, we find that the CO2 emissions and CO2 prices vary convexly and nonlinearly with the discount rate and climate sensitivity over time. Accounting for this uncertainty is important for designing climate policies and carbon prices to accelerate the transition. In 70% of the scenarios, a 1.5 °C temperature overshoot was within this decade, calling for immediate policy action. Delaying this action by ten years may result in 2 °C mitigation costs being similar to those required to reach the 1.5 °C target if started today, with an immediate peak in emissions, a larger uncertainty in the medium-term horizon and a higher effort for net-zero emissions.

Analysis of the impact of natural resources and globalization on environmental quality and economic growth: The study of SANE nations

The outcome of resources and globalization on growth and the quality of the environment among SANE (South Africa, Algeria and Nigeria) nations from 1990 to 2020 was investigated in this study. Economic growth and environmental degradation are the dependent variables, whereas the independent variables are natural resources, population, foreign direct invest- ment, trade openness, globalization, domestic credit to private sector by banks and investment. The study utilizes FMOLS and Granger Causality estimation procedure. Findings from the environmental degradation outcome suggest that per capita gross domestic product, gross fixed capital formation and globalization have positive significant impact on the regressand while trade openness has adverse significant impact on environmental degradation. The result from the economic growth model indicates that natural resources and total population posi- tively and significantly influence per capita gross domestic product. The Granger causality outcome predicts a uni-directional relationship that runs from environmental degradation to globalization, and a one-way causality from globalization to per capita gross domestic prod- uct. Also, a uni-directional causal relationship was observed from natural resources to glob- alization. Based on the outcome, the study recommends that investment in clean technologies should be given high precedence, and since these greener technologies are capital intensive, there is a need for the provision of adequate finance to the private sector to procure these technologies as these would help to alleviate the challenge of degradation of the environment, and increase the value of the environment in the SANE nations.

Does energy efficiency mediate a green economic recovery? Evidence from China

A green economic recovery post-pandemic presents a unique opportunity to rebuild a more sustainable and resilient world while promoting economic growth in China. One key aspect of a green economic recovery is energy efficiency, which can significantly reduce energy consumption, lower costs, and create new jobs. This study focuses on the relationship between carbon emissions and energy efficiency in China. Using province-level CO2 emissions data from 1990 to 2022, the study finds that energy efficiency has both positive and negative asymmetric effects on CO2 emissions in the long run, while renewable energy has a positive effect and non-renewable energy has a negative effect. The study also confirms the Environmental Kuznets Curve hypothesis, indicating that as per capita income increases, investments in cleaner technologies should be encouraged to mitigate the adverse effects of CO2 emissions. The energy and environmental policy implications are also suggested as prioritizing policies that improve energy efficiency, promote renewable energy sources, and reduce non-renewable energy consumption to achieve sustainable development goals.

Science ranks high in Biden’s 2024 budget plan

Investment in climate science and clean energy technologies made it to the top of President Joe Biden’s priorities in his budget plan for fiscal 2024 , which begins Oct. 1. Basic scientific research, environmental justice, and agricultural innovation also got big nods. The proposal, released March 9, has little chance of getting through the Republican-controlled House of Representatives. But it serves as a starting point for a deeply divided Congress to negotiate spending priorities and cuts over the next several months. Biden’s plan allocates $25 billion, an increase of about $6.5 billion from 2023, for activities authorized by the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act . That legislation aims to boost the global competitiveness of US research by allowing major increases in funding for the National Science Foundation (NSF), the Department of Energy’s (DOE) Office of Science, and the National Institute of Standards and Technology (NIST).

The interaction of wholesale electricity market structures under futures with decarbonization policy goals: A complexity conundrum

Competitive wholesale electricity markets can help facilitate energy system decarbonization by incentivizing investments in clean energy technologies that meet evolving system needs. We explore market structure impacts on generator operations and deployment by risk-averse, heterogeneous investor firms using the Electricity Markets and Investment Suite – Agent-based Simulation (EMIS-AS) model. We apply clean energy targets of 45%–100% by 2035 considering energy, ancillary services, capacity, and clean energy credit products and pricing and eligibility rules. Results highlight a complexity conundrum, whereby finding the “right” market design to achieve decarbonization goals and avoid unintended consequences can be a highly-nuanced, non-incremental challenge. Carefully designed energy-only markets can achieve the same clean energy targets as capacity market structures but with different revenue and profitability outcomes. Operating reserve demand curve-based scarcity pricing can substitute capacity markets for similar deployment outcomes. Carbon pricing alone is most effective at achieving decarbonization levels at low clean energy targets, and clean energy credit markets and carbon pricing are substitutionary at high clean energy targets. Restricting technology participation in capacity and operating reserve markets can impact deployment and operations, even for nonrestricted technologies. Adding an inertia product with fast frequency response yields insufficient provision at high clean energy targets, but work is needed to understand frequency requirements and capabilities.

Evaluation of the role of clean energy technologies, human capital, urbanization, and income on the environmental quality in the United States

In today's world, environmental concerns are at the forefront of countries' considerations, along with economic priorities. In this context, countries face the challenge of developing and directing their investments in clean energy technologies to achieve the Sustainable Development Goals, particularly affordable and clean energy. Does the development and diffusion of clean energy technologies contribute to improving environmental quality? This study addresses this question by examining the effects of clean energy technologies on sustainable environmental quality as expressed by the load capacity factor (LCF). In this context, the study explores the United States (US), as the largest economy and one of the leading countries investing in clean energy, considering the role of human capital, urbanization, and economic growth. To this end, this paper applies the novel augmented autoregressive distributed lag (ARDL) model to annual data from 1974 to 2018. The long-term empirical results show that (i) Clean energy technologies have no effect on the LCF; (iii) human capital supports environmental quality; (iv) urbanization has an adverse effect on environmental quality; (v) increasing economic growth worsens environmental quality. Overall, the empirical results suggest that while clean energy technologies should support sustainable environmental quality, this is unfortunately not the case in the US. Therefore, the US policymakers need to take improvement actions to ensure that clean energy technologies contribute to sustainable environmental quality and that the community reaps the environmental benefits of human capital.

Does venture-backed innovation support carbon neutrality?

PurposeThis paper aims to answer three questions: (1) Which countries invest more capital in green firms? (2) What kind of industries do venture capitals (VCs) invest in? (3) Do VCs invest more capital in green firms?Design/methodology/approachFirst, the authors provide summary statistics of the key variables for green and non-green firms. Then the authors use figures to plot the growth of green firms over time. Next, the authors use descriptive data to study VC-invested firms for the top 10 countries and industries for all firms, green firms and non-green firms. Finally, the authors compare the VC investors' characteristics and investment behavior between green and non-green firms.FindingsThis study documents that venture-backed investments in clean technologies have increased dramatically in the number of deals and in the total amount of dollar volume over time. This paper provides evidence that VC firms invest more in green firms in each deal than in non-green firms. The United States and European countries play an important role in funding clean technologies across countries, and this study’s results suggest that VC investors play a considerable role in shaping the development of green finance.Originality/valueThis paper makes the first attempt to investigate the role of VCs in clean technologies to support carbon neutrality, providing initial evidence on venture capitalists' investment efforts towards carbon neutrality. The paper also has practical implications for start-up firms that raise capital and venture capitalists who finance green start-ups.

Mirage on the horizon: Geoengineering and carbon taxation without commitment

We show that, in a model without commitment to future policies, geoengineering breakthroughs can have adverse environmental and welfare effects because they change the (equilibrium) carbon taxes. In our model, energy producers emit carbon, which creates a negative environmental externality, and may decide to switch to cleaner technology. A benevolent social planner sets carbon taxes without commitment. Higher future carbon taxes both reduce emissions given technology and encourage energy producers to switch to cleaner technology. Geoengineering advances, which reduce the negative environmental effects of the existing stock of carbon, decrease future carbon taxes and thus discourage private investments in conventional clean technology. We characterize the conditions under which these advances diminish—rather than improve—environmental quality and welfare, and show that given current estimates of costs and environmental damages, these conditions are likely to be satisfied in our model.

Innocent devils: The varying impacts of trade, renewable energy and financial development on environmental damage: Nonlinearly exploring the disparity between developed and developing nations

Global warming has grown to be a significant issue on a global scale and is a result of human activities. As a potential solution, nations are looking for sustainable economic growth and investments in clean energy technologies. Therefore, this study aims to empirically investigate the impact of trade, renewable energy, and financial development on environmental degradation among developed and developing countries in light of the EKC (Environment Kuznets Curve) hypothesis. The influence on carbon emissions from 1990 to 2019 is analyzed and contrasted using the Non-linear Auto Regressive Distributed Lag (NARDL) regression technique. Results show that developed and developing countries emit significantly different amounts of carbon. Consequently, evidence of a non-linear and inverted U-shape relationship supports the EKC hypothesis. Further evidence shows a high risk of carbon emissions among both groups of countries with the increase in financial development and trading activities. However, the usage of renewable energy reduces environmental damage, and the association is non-linear. The study recommends using effective measures to minimize environmental damage by using clean energy sources and strengthening the financial system by offering environment-friendly investment loans. Moreover, policies should be designed that promote sustainable growth and investments in environment-friendly technologies.

Green bargains: leveraging public investment to advance climate regulation

ABSTRACT Climate policy has entered a new era as public investment is increasingly moving to center stage, including recovery spending and long-term climate investment plans. While essential for decarbonization, public investment is not enough – the carrots of investment need to go hand in hand with regulatory sticks. Public investment in clean technologies and infrastructure does not guarantee decarbonization outcomes. Yet, climate regulation, particularly high and comprehensive carbon prices, has remained elusive in the United States and many other parts of the world. Against this backdrop, the big public investment push offers a political opportunity of government leverage. Governments can tie climate requirements to public investment as part of a 'green bargain.’ At the core of these arrangements is reciprocity – linking carrots to sticks – to ensure public investment leads to technological change and emission reductions. Drawing on the experience with ‘reciprocal control mechanisms’ in public investment among late industrializers, this paper advances our understanding of green bargains. It examines the historical precedents of green bargains, introduces a typology, and offers an empirical overview based on an original dataset of implemented and proposed green bargains. We then focus on the design choices related to leverage, scope, and accountability to make green bargains effective at technological learning and advancing decarbonization. The article concludes with a discussion of US and international policy fora that can serve as platforms to develop green bargains as public climate investments expand. Key policy insights Scaling public investment for decarbonization is essential but not sufficient. Climate regulation needs to complement investment to ensure decarbonization outcomes. Yet governments, in particular the US, are falling short of needed climate regulation. Public investment offers leverage to tie climate requirements to government spending on clean technology and infrastructure. Linking carrots to sticks represents a ‘green bargain’ between governments and firms and industries, with reciprocity at its core. This resembles the ‘reciprocal control mechanisms’ of late industrializers. To make green bargains effective, their design needs to facilitate broad scope, high government leverage, and high accountability.

Spatial and temporal evolution characteristics and spillover effects of China's regional carbon emissions

China's carbon emissions account for approximately a quarter of the world's total greenhouse gas emissions. In 2020, China's fossil fuels accounted for approximately 85% of the primary energy demand, with coal alone accounting for 60%. Considering the severe global warming situation, it is necessary to reveal the spatial and temporal differences and analyze the spillover effects of carbon emissions between regions. In this study, a positive and significant spatial correlation between regional carbon emissions in China was found using an exploratory spatial data analysis. The spatial Durbin model was then utilized to explore the direct and spillover effects of factors that included economic growth, the energy intensity, and the level of technological innovation on regional carbon emissions. Whether a direct effect or a spillover effect, economic growth and improvements in the regional levels of technological innovation had significant inhibitory effects on carbon emissions both in the long term and in the short term. Specifically, an increase of 1% in the level of technological innovation led to a reduction of approximately 0.17% in the region's carbon emissions. However, a growth in the energy intensity will increase carbon emissions. In addition, an increase in the technological input intensity will lead to an increase in carbon emissions in local regions. However, an increase in neighboring regions will restrain carbon emissions in a local region. Based on these findings, it is recommended that the government accelerate regional innovation synergies and increase investment in clean energy technologies.

The effect of access to clean technology on pollution reduction: An experiment

We use a laboratory experiment to study decisions in a dynamic game where firms' private production leads to accumulation of a public bad, such as pollution. Firms have an option to invest in clean technology, which proportionally lowers their emissions, or contributions to the public bad. The main treatment variable is the type of access to clean technology, or benefits from such investment, which can be private or common. Under private access, investment reduces the firm's own propensity to pollute. Under common access, each firm's investment reduces all firms' propensity to pollute. For each treatment, we characterize the Markov perfect equilibrium and social optimum. The observed level of the public bad is lower with common access. This result remains in the presence of communication. The option to communicate induces coordination of investments in clean technology at a higher level, leading to lower average pollution levels in both treatments.

Demand Response Analysis Framework (DRAF): An Open-Source Multi-Objective Decision Support Tool for Decarbonizing Local Multi-Energy Systems

A major barrier to investments in clean and future-proof energy technologies of local multi-energy systems (L-MESs) is the lack of knowledge about their impacts on profitability and carbon footprints due to their complex techno-economic interactions. To reduce this problem, decision support tools should integrate various forms of decarbonization measures. This paper proposes the Demand Response Analysis Framework (DRAF), a new open-source Python decision support tool that integrally optimizes the design and operation of energy technologies considering demand-side flexibility, electrification, and renewable energy sources. It quantifies decarbonization and cost reduction potential using multi-objective mixed-integer linear programming and provides decision-makers of L-MESs with optimal scenarios regarding costs, emissions, or Pareto efficiency. DRAF supports all steps of the energy system optimization process from time series analysis to interactive plotting and data export. It comes with several component templates that allow a quick start without limiting the modeling possibilities thanks to a generic model generator. Other key features are the access and preparation of time series, such as dynamic carbon emission factors or wholesale electricity prices; and the generation, handling, and parallel computing of scenarios. We demonstrate DRAF’s capabilities through three case studies on (1) the DR of industrial production processes, (2) the design optimization of battery and photovoltaic systems, and (3) the design optimization and DR of distributed thermal energy resources.

Panorama of the Brazilian Plastic Packaging Sector and Global Technological Trends: the Role of Developed and Developing Countries in Achieving Environmental Sustainability and a Better Quality of Life Worldwide

The plastic packaging industry has changed its production processes. Population growth, allied to society's new consumption pattern and uncontrolled urbanization, increased solid waste generation, is the main cause of environmental pollution and degradation. Some specific data indicate that the volume of used packaging will continue to grow over the next few years. In this study, we present an overview of the Brazilian plastic packaging sector, the current scenario of urban solid waste with a focus on plastic waste, and global trends in the plastic packaging market in terms of technologies that minimize its impact on the environment. Furthermore, we also highlight the case of the USA. This developed country published most patents on monolayer, multilayer, and nanotechnology packaging from 2010 to 2021. Still, it showed how investing in technologies for the packaging sector was not enough for the population's welfare due to the high social inequality in the country. We conclude that solutions to issues regarding the planet's social welfare and environmental sustainability include the adoption of circular economy models, investment in clean technologies, accountability of rich countries regarding greenhouse gas emissions in their territories, and, in the case of developing countries, public policies that encourage effective actions.

Investment in Cleaner Technologies in a Transboundary Pollution Dynamic Game: A Numerical Investigation

Investment in Cleaner Technologies in a Transboundary Pollution Dynamic Game: A Numerical Investigation

PURSUING GROWTH AND MANAGING THE ENVIRONMENT: THE SINGAPORE MODEL

Since its independence, Singapore has faced a tradeoff between increasing economic growth and maintaining environmental quality. We qualitatively assess Singapore’s success in managing these tradeoffs. We present, illustrate and discuss seven strategies that have contributed to this, namely (I) Spearheading of Green Industrialization Efforts by the State; (II) Environmental Regulations; (III) Quantification of Economic Benefits from Going Green; (IV) Active Engagement of Stakeholders; (V) Use of Market Instruments; (VI) Use of Behavioral Interventions; (VII) Investment in Renewable and Clean Technologies. We also highlight some areas for improvement, as well as provide some insights on the thought processes behind certain policies and suggestions as to how these strategies can be refined where applicable.

Decarbonisation of the Polish residential sector between the 1990s and 2021: A case study of policy failures

In this paper, we study the policies that regulated the energy mix in the Polish residential sector between 1990 and 2021. We apply a qualitative assessment of policies and difference-in-differences to evaluate the effects of particular regulations. We find that policymakers in Poland did not identify households as stakeholders in their strategies since starting the energy transformation back in the 1990s until the early 2020s. We demonstrate that the government policies failed to stimulate efficient decarbonisation of the residential sector and did not address such issues as energy poverty and air pollution, while the coal consumption rates by Polish households remained the highest in the European Union. The situation has started to change since 2017 when the first regions in Poland introduced anti-smog regulations, which have had a minor, yet positive effect on air quality and the decrease in the number of coal stoves. Furthermore, “Clean air” and “My electricity” programmes were introduced in 2018 and 2019, which provided subsidies for investments in clean heating technologies, and small-scale photovoltaics. These support instruments have yielded relatively positive results. Finally, the Polish energy policy of 2021 identified decarbonisation in the residential sector, reducing energy poverty and improving air quality as key priorities.