Global diffusion of energy technologies at the level of firms

The Institute of Economics will hold a seminar meeting as part of its Seminar Series on Tuesday, February 27, 2024: Anton Pichler from Vienna University of Economics and Business will present the paper "Global diffusion of energy technologies at the level of firms".

Abstract:

Using a global sample of more than 30,000 firms, we conduct an in-depth analysis of technological adoption dynamics in the power sector. We track firm-specific technology portfolios over two decades and investigate the driving forces behind the observed capacity expansion of firms. Our analysis indicates that technology portfolios are highly concentrated and persistent. We wind that in a typical year, only a small share of firms invests in new power capacities, and if firms invest, they tend to reinforce existing portfolio concentrations. Despite the long time horizon considered, we can identify only a few firms that have transformed their portfolios from primarily fossil to renewable technologies. Moreover, we find that new market entrants are an important driver of renewable energy deployment. Our results are highly relevant for assessing transition risks on the firm level. Suppose empirical technology diffusion rates and firm-specific adoption behaviors persist. In that case, our analysis suggests that renewable energy firms will dominate the future power system instead of incumbent fossil energy firms transitioning to green technologies. These results also have important consequences for bottom-up models of the energy transition.

Seminar will be in Aula 5. The seminar is available at this link.