PhD defense Modelling the low-carbon transition: a theoretical approach Mohamed

(2021) 4 Path dependency of green innovation • There is a path dependency of green innovation • More green innovation today is expected to lead to even more green innovation in the future • Theoretical side: Acemoglu et al. [...] (2016) « Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry » 5 Path dependency of green innovation • There is a path dependency of green innovation • More green innovation today is expected to lead to even more green innovation in the future • Theoretical side: Acemoglu et al. [...] (2016) « Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry » • The trajectory of green innovation over the past twenty years seems inconsistent with this concept of path dependency • Why did green innovation suddenly decline after increasing for nearly two decades? 6 Literature • Why this sudden downturn? Possible explanations • Oil price drop: Acemoglu. [...] • The regulator can counteract this effect and reach the social optimum by implementing a carbon tax and subsidizing the research in renewable AND storage technologies. [...] 17 Policy recommendations • In 2021 (Lazard (2021a), Lazard (2021b)): • CCGT: between 45$ and 74$/MWh • Solar PV: between 28$ and 37$/MWh • Storage: between 165$ and 296$/MWh • Governments should now prioritize supporting research in the storage sector • Supporting research and innovation in energy storage (particularly in long-term storage) is part of the European Commission recommendations on en.