Do Investments in Clean Technologies Reduce Production Costs? Insights from the Literature

In response to growing environmental concerns, particularly climate change, governments have encouraged innovation and adoption of clean technologies through various policy measures. At present more than half a trillion US dollars is being invested...

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Main Authors:	Timilsina, Govinda, Malla, Sunil
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	CLEAN ENERGY TECHNOLOGY GREEN ENERGY ENERGY EFFICIENCY
Online Access:	http://documents.worldbank.org/curated/en/758291624565097893/Do-Investments-in-Clean-Technologies-Reduce-Production-Costs-Insights-from-the-Literature http://hdl.handle.net/10986/35885

id	okr-10986-35885
recordtype	oai_dc
spelling	okr-10986-358852021-07-02T05:10:55Z Do Investments in Clean Technologies Reduce Production Costs? Insights from the Literature Timilsina, Govinda Malla, Sunil CLEAN ENERGY TECHNOLOGY GREEN ENERGY ENERGY EFFICIENCY In response to growing environmental concerns, particularly climate change, governments have encouraged innovation and adoption of clean technologies through various policy measures. At present more than half a trillion US dollars is being invested annually in clean technologies. Based on the existing literature, this study analyzes whether investments in clean technologies increase productivity. The findings are mixed. Employing firm-level data, the majority of ex-post studies show a positive relationship between clean investments and firms’ productivity, especially in the energy-intensive manufacturing sector. Most studies for the transport, building and power sector use an ex-ante, technology or sectoral level analysis instead of ex-post analysis to examine the economics of clean technologies. In the transport sector, transportation services with electricity or hydrogen are still more expensive than that with gasoline and diesel vehicles. Some studies, however, project that cleaner vehicles will be economically attractive within a decade. Many studies report that clean technologies reduce energy consumption and save energy bills in the building sector, although some studies do not agree. Most studies for the power sector indicate that renewable technologies have not yet reduced the average costs of grid electricity because of their intermittency and a smaller share in the total electricity supply. 2021-07-01T14:06:56Z 2021-07-01T14:06:56Z 2021-06 Working Paper http://documents.worldbank.org/curated/en/758291624565097893/Do-Investments-in-Clean-Technologies-Reduce-Production-Costs-Insights-from-the-Literature http://hdl.handle.net/10986/35885 English Policy Research Working Paper;No. 9714 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CLEAN ENERGY TECHNOLOGY GREEN ENERGY ENERGY EFFICIENCY
spellingShingle	CLEAN ENERGY TECHNOLOGY GREEN ENERGY ENERGY EFFICIENCY Timilsina, Govinda Malla, Sunil Do Investments in Clean Technologies Reduce Production Costs? Insights from the Literature
relation	Policy Research Working Paper;No. 9714
description	In response to growing environmental concerns, particularly climate change, governments have encouraged innovation and adoption of clean technologies through various policy measures. At present more than half a trillion US dollars is being invested annually in clean technologies. Based on the existing literature, this study analyzes whether investments in clean technologies increase productivity. The findings are mixed. Employing firm-level data, the majority of ex-post studies show a positive relationship between clean investments and firms’ productivity, especially in the energy-intensive manufacturing sector. Most studies for the transport, building and power sector use an ex-ante, technology or sectoral level analysis instead of ex-post analysis to examine the economics of clean technologies. In the transport sector, transportation services with electricity or hydrogen are still more expensive than that with gasoline and diesel vehicles. Some studies, however, project that cleaner vehicles will be economically attractive within a decade. Many studies report that clean technologies reduce energy consumption and save energy bills in the building sector, although some studies do not agree. Most studies for the power sector indicate that renewable technologies have not yet reduced the average costs of grid electricity because of their intermittency and a smaller share in the total electricity supply.
format	Working Paper
author	Timilsina, Govinda Malla, Sunil
author_facet	Timilsina, Govinda Malla, Sunil
author_sort	Timilsina, Govinda
title	Do Investments in Clean Technologies Reduce Production Costs? Insights from the Literature
title_short	Do Investments in Clean Technologies Reduce Production Costs? Insights from the Literature
title_full	Do Investments in Clean Technologies Reduce Production Costs? Insights from the Literature
title_fullStr	Do Investments in Clean Technologies Reduce Production Costs? Insights from the Literature
title_full_unstemmed	Do Investments in Clean Technologies Reduce Production Costs? Insights from the Literature
title_sort	do investments in clean technologies reduce production costs? insights from the literature
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/758291624565097893/Do-Investments-in-Clean-Technologies-Reduce-Production-Costs-Insights-from-the-Literature http://hdl.handle.net/10986/35885
_version_	1764483986928697344

Do Investments in Clean Technologies Reduce Production Costs? Insights from the Literature

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