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No evidence of counteracting policy effects on European solar power invention and diffusion

PublicationArticle (with peer review)
Jonas Grafström

Abstract

In this paper, the questions of how support policies affect invention and diffusion of solar PV technology and whether the effect is heterogeneous and counteracting are investigated in order to help policy makers produce a better policy mix. The policies (and policy proxies) investigated are Feed-in-tariffs (FITs), Public R&D stock and flow, Environmental tax, and Environmental Policy Stringency Index. The policies are within the control of national government and no EU level policies are investigated. Evaluating policies on several dimensions is highly important since there is a risk that policies can promote one aspect of technological progress such as invention but derail diffusion. A Schumpeterian technological development approach is utilised on a panel dataset covering 23 European countries between 2000 and 2019. Two econometric approaches are employed, a negative binomial regression model is used to assess inventions and a panel data fixed effect regression is used for the diffusion model. The empirical findings suggest that no counteracting policy effects were present.

Grafström, J., & Poudineh, R. (2023). No evidence of counteracting policy effects on European solar power invention and diffusion. Energy Policy, 172, 113319.

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Decoding the barriers for a circular plastics industry: An equation framework
Article (with peer review)Publication
Jonas Grafström
Publication year

2025

Abstract

Empirical research on barriers to a circular plastics economy has predominantly relied on case study approaches. While research has provided insights into the conceptual and economic aspects of these barriers, a gap remains in the application of formalized methodologies to systematically understand and address them. This paper seeks to bridge this gap by developing an equation system tailored to the circular plastics industry, bringing clarity to the complex interplay of factors that constitute barriers to a circular economy. The study identifies four primary barriers to the circular economy, as documented in the literature between 2017 and 2024: economic, institutional and regulatory, technological, and social. The results include 24 equations synthesized into four master equations. A mathematical case study demonstrates how numerical weights reflecting the relative importance of variables can differ between countries, offering a practical guide for applying the framework across diverse contexts. The study concludes that reducing regulatory ambiguity, scaling recycling infrastructure, and fostering consumer trust in recycled materials are critical steps. However, each country will face unique challenges, requiring policymakers to adopt tailored approaches and variable weighting.

Working Paper No. 379: Europe’s Future Industrial Landscape: A Green Industrial Location Attractiveness Index
Working paperPublication
Grafström, J.
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Publication year

2024

Published in

Ratio Working Paper Series.

Abstract

Increased gas prices, constraints in nuclear power generation, and diminished hydroelectric production have introduced challenges for Europe, coinciding with an emerging green industrialization. Utilizing data from the European Commission and Eurostat, we introduce the Green Industrial Location Attractiveness Index, a tool designed to help assessing locations of future green industrial developments. Our findings highlight Sweden, Finland, and France as probable destinations for green industrial projects. A revealing geographical divide where northern European countries rank higher compared to their southern counterparts. This analysis enhances our understanding of Europe’s changing industrial landscape amidst volatile electricity prices, offering insights for policymakers and investors. An overarching conclusion of the paper is that well-crafted energy policies help mitigate the economic impacts of energy price fluctuations on energy-intensive industries, ensuring that Europe’s industrial landscape remain competitive.

Economic freedom and environmental performance
Book chapterPublication
Graftström, J.
Publication year

2024

Published in

Handbook of Research on Economic Freedom. Cheltenham, UK: Edward Elgar Publishing.

Abstract

In this chapter, the relationship between economic freedom and environmental performance is scrutinized. The analysis relies on comparing countries’ standing in the Environmental Performance Index (EPI) of the Yale Centre for Environmental Law & Policy with two indexes of economic freedom, one developed by the Fraser Institute (Economic Freedom of the World index), and the other by the Heritage Foundation (Index of Economic Freedom). Whether economic freedom is good or bad for the environment depends on how it affects incentives, productive efforts, and effective resource use. Greater economic freedom can both harm and help environmental performance. It is a complicated relationship, but high economic freedom generally goes hand in hand with high scores in the EPI.

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