ENERGY STRATEGY How the engineers or technical myth namely p

ENERGY STRATEGY

How the engineer’s or technical myth, namely placing too much emphasis on the invention of new technologies, has led to the development of poor renewable energy policies.  

Solution

We must differentiate between technology and nature of technology. Technology is something that is collection of techniques, methods or skills for accomplishment of the objective whereas the nature of technology is something that gives clarification of the technology. Moreover, policy intervention is the effective tool to change relative poor renewable energy policies, thus, incentivizing innovation of new technology in the same regard. However, it should also be emphasized that various factors that influence the effect of poor renewable energy strategy are technology type, market structure and policy commitment and stringency. Focusing on renewable energy technology innovation, we will have to agree that specific renewable energy policies are required in order to overcome concomitant market failures and barriers. The presence of market distortions inhibiting socially optimal investments in renewable energy innovation requires specially tailored policy intervention. We underline the fact that technology-specific policies for renewable energies are necessary complements to environmental non-technology-specific policies, such as emission trading or the introduction of carbon taxes in order to generate adequate demand in energy markets. There is still a lack of agreement here as to which technology-specific policies - renewable portfolio standards or feed-in tariffs - are more effective at inducing innovation. Additionally, technology-push policies are necessary, especially in the early stages of technology development. Overall, we can confirm that successful technological change requires a mix of market-pull and technology push policies. Mainly environmental regulation and subsequent innovation can be advantageous for the international competitiveness of certain industries in terms of trade but, by regular updation can have on reducing technology cost and also point out that other factors can contribute to decreasing technology costs.