0UN_YR` DRV`` N[Q DVYYVNZ / /\[cVYYVN[ Structuring an Energy Technology Revolution Structuring an Energy Technology Revolution Structuring an Energy Technology Revolution Charles Weiss and William B. Bonvillian The MIT Press Cambridge, Massachusetts London, England © 2009 Massachusetts Institute of Technology All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the publisher. For information about special quantity discounts, please e-mail
[email protected] This book was set in Sabon by SNP Best-set Typesetter Ltd., Hong Kong. Printed and bound in the United States of America. Library of Congress Cataloging-in-Publication Data Weiss, Charles. Structuring an energy technology revolution / Charles Weiss and William B. Bonvillian. p. cm. Includes bibliographical references and index. ISBN 978-0-262-01294-2 (hardcover : alk. paper) 1. Renewable energy sources—Research—Government policy— United States. 2. Energy policy—United States. 3. Federal aid to research—United States. I. Bonvillian, William. II. Title. TJ807.9.U6W45 2009 333.790973—dc23 2008043059 10 9 8 7 6 5 4 3 2 1 Contents Preface ix 1 Introduction 1 Demand-Side Measures by Themselves Will Be Insufficient 7 2 An Integrated Innovation Policy Model for Energy Technology 13 Three Theories of Innovation 16 Integrated Innovation in Energy Technology 28 The Four-Step Analytic Framework 34 3 Promoting Development and Adoption of New Energy Technology 37 The Multiple-Strand Problem in Technology Policy 37 The Economic Justification for Public Intervention 39 Defining Terms 42 St