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Patrick Avato - Accelerating Clean Energy Technology Research, Development, and Deployment: Lessons from Non-energy Sectors. World Bank Working Paper, 138

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Patrick Avato Accelerating Clean Energy Technology Research, Development, and Deployment: Lessons from Non-energy Sectors. World Bank Working Paper, 138
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Title WORLD BANK WORKING PAPER NO 138 Accelerating Clean Energy Technology - photo 1

Title

WORLD BANK WORKING PAPER NO . 138

Accelerating Clean Energy
Technology Research,
Development, and Deployment

Lessons from Non-energy Sectors

Patrick Avato

Jonathan Coony

ESMAP (Energy Sector Management Assistance Program)

Accelerating Clean Energy Technology Research Development and Deployment Lessons from Non-energy Sectors World Bank Working Paper 138 - image 2

Copyright

Copyright 2008
The International Bank for Reconstruction and Development / The World Bank 1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First Printing: May 2008

1 2 3 4 5 11 10 09 08 World Bank Working Papers are published to communicate - photo 3

1 2 3 4 5 11 10 09 08

World Bank Working Papers are published to communicate the results of the Bank's work to the development community with the least possible delay. The manuscript of this paper therefore has not been prepared in accordance with the procedures appropriate to formally-edited texts. Some sources cited in this paper may be informal documents that are not readily available.

The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the International Bank for Reconstruction and Development/

The World Bank and its affiliated organizations, or those of the Executive Directors of The World Bank or the governments they represent.

The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank of the legal status of any territory or the endorsement or acceptance of such boundaries.

The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/The World Bank encourages dissemination of its work and will normally grant permission promptly to reproduce portions of the work.

For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, Tel: 978-750-8400, Fax: 978-750-4470, www.copyright.com.

All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, Fax: 202-522-2422, email: .

ISBN-13: 978-0-8213-7481-8
eISBN: 978-0-8213-7481-8
ISSN: 1726-5878 DOI: 10.1596/978-0-8213-7481-8

Cover Photos: Bottom right: CFE's (Comisin Federal de Electricidad) La Venta II Wind Farm in Oaxaca, Mexico. Courtesy of Daniel Farchy, www.farchy.com. Remaining photos are the courtesy of the World Bank Group Photo Library.

Library of Congress Cataloging-in-Publication Data

Avato, Patrick, 1979

Accelerating clean energy technology research, development, and deployment : lessons from non-energy sectors / Patrick Avato, Jonathan Coony.

p. cm.(World Bank working paper ; No. 138)

Includes bibliographical references.

ISBN 978-0-8213-7481-8ISBN 978-0-8213-7481-8 (electronic)

1. Renewable energy sources. I. Coony, Jonathan. II. Title.

TJ808.V83 2008

333.79'15dc22

2008013192

Contents

Contents

Foreword
Acknowledgments
Acronyms and Abbreviations
Executive Summary
1.Introduction
2.Climate Change and the Need for New Clean Energy Technologies
The Growing Global Concern about the Threat of Climate Change
Clean Energy Technology Options
The Need for New and Improved Clean Energy Technologies
3.Trends in Energy Research and Development Spending
A Period of Reduced Energy R&D Spending from Mid-1980s to Early 2000s
Renewed Public and Private RD&D Activity in Recent Years
The Increasing Role of Rapidly Growing Client Countries in Energy RD&D
The Limits of Renewed Energy RD&D Activity
4.Barriers to the Development and Deployment of Clean Energy Technologies
Negative Externality of Carbon Emissions Is Difficult to Valuate
Climate Change Mitigation Is a Global Public Good
The Valley of Death between Public- and Private-Sector Development
The Mountain of Death of Technology Costs
Technology Needs of Developing Countries Are Not Adequately Served
Intellectual Property Right Protection is a Concern
The Network Structure of the Electricity Sector Limits Integration of New Technology
National Interests Can Impede International Collaboration
Energy RD&D Can Require Large, Sunk Capital Investments
The Commodity Nature of Electricity
Carbon Lock-in, Subsidies, and Barriers to Trade
Imperfect and Asymmetric Information
5.Case Studies of Technical Innovation from Other Sectors
Agriculture and the Consultative Group on International Agricultural Research (CGIAR)
Vaccines and Advanced Market Commitments (AMCs)
Biotechnology and the Human Genome Project (HGP)
Open Source Software, Creation Networks, and Distributed Innovation
6.Lessons Learned
Bridging the Valley of Death
Pooling Resources to Address Global Public Goods
Facilitating Innovative Research Partnerships
Transferring Technology: South-South and North-South
Sharing Information and Addressing Intellectual Property Rights
Setting Goals without Picking Winners
Using World Bank Group Strengths to Promote Technology Development
7.Going Forward
Appendixes
AThe Stages of Energy Technology Innovation
BOverview of Selected Clean Energy Technology Options
CAnalyses Supporting the Need for Technological Innovation
DHistorical Data on Government Energy R&D Spending
Bibliography
List of Tables
1.Summary of Case Studies of Technology Innovation in Non-energy Sectors
2.Agricultural R&D Spending and the Role of the CGIAR
3.AMC Donors Commitments for a Pneumococcal Vaccine
4.Human Genome Project Funding (US$ millions)
5.Innovative RD&D Approaches to Address Barriers to Technology Development
A2.1Clean Energy Technologies and Mitigation Potential Resulting from Accelerated Technology Innovation
A4.1Public R&D Expenditures in IEA Countries
A4.2Combined Spending by All IEA Governments on Energy R&D (million of US$ in 2004 prices and exchange rates)
List of Figures
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