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Cambridge Centre for Environment, Energy and Natural Resource Governance

In a new C-EENRG Working Paper 'Underestimation of the Impacts of Decarbonisation Policies on Innovation to Create Domestic Growth Opportunities', C-EENRG Fellows Cristina Peñasco, Sergey Kolesnikov and Laura Diaz Anadon show that the basis for decision making in many climate, energy and innovation policies is biased against correctly estimating the opportunities and economic benefits from decarbonisation policies. The three main reasons are: the underestimation of technological change by experts and most quantitative approaches; the new evidence regarding the positive impact of decarbonisation policies across all stages of innovation, not just diffusion; and the underrepresentation of innovation processes in economic models.

This working paper was developed as part of the project entitled ‘Economics of Energy Innovation and System Transition’ (EEIST),

Read the working paper in full: Peñasco, C., Kolesnikov, S., and Anadon, L. D. (2021). Underestimation of the impacts of decarbonisation policies on innovation to create domestic growth opportunities. C-EENRG Working Papers, 2021-6, p.1-16.

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Learn more about the EEIST project