The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector

Less from More: China Built Wind Power, but Gained Little Electricity

Book chapterPublication

Grafström, J.

Publication year

2022

Published in

Questioning the Entrepreneurial State, 219.

Abstract

This chapter investigates Chinese wind power development and concludes that innovation cannot be pushed by the efforts of many, and that when the state clarifies directions and objectives, these can be achieved but with severe and unexpected side effects. Two topics are explored: wind curtailment and low technological development, both examples of unproductive entrepreneurship induced by government policies. The goal of wind power capacity expansion leads to construction (i.e., generation capacity) but little electricity. Examples of failures include low grid connectivity with, some years averaging 15% of generation capacity broken or unconnected to the grid. A key lesson for Europe is that forced innovation often amounts to little and that the old saying holds up: “no plan survives contact with reality.”

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Ratio Working Paper No. 340: Job Creation in the Wind Power Sector Through Marshallian and Jacobian Knowledge Spillovers

Working paperPublication

Aldieri, L., Grafström, J. & Paolo Vinci, C.

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Publication year

2020

Published in

Ratio Working Paper

Abstract

The empirical evidence concerning the job-creation impact of wind power technology through knowledge spillovers is yet poor. Our objective is to contribute to the literature and bridge this gap. Specifically, our analysis explores to what extent investments in innovation activities of one firm affect the neighbouring firms’ generation of knowledge spillovers in the same sector (intra-industry) or to different sectors (inter-industry) and how this complex knowledge diffusion process impacts the employment dynamics. The econometric analysis relies on a sector-based panel dataset for the USA, Europe, and Japan between 2002 and 2017. The empirical findings suggest that there were negative employment spillovers from the same technology sector (Marshallian externalities) while the spillovers from more diversified activity (Jacobian externalities) have a positive impact on job-creation. The findings have relevant policy implications for governments who are developing an industrial strategy for wind power technology.

Technological Change in Service of the Environment

Article (without peer review)Publication

Grafström, J.

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Publication year

2019

Published in

IAEE Energy Forum

Abstract

The overall purpose of this paper is to briefly outlay and analyze the fundamentals of technological change in the renewable energy sector. Considering the threat of severe consequences of global warming, and policymakers’ desire to focus technological change in renewable energy as one of the solutions, the contribution of this paper lays in its attempt to promote understanding of the technological change process, i.e., the drivers behind it and the possible development patterns for different countries. Such knowledge should enable policy makers to make more efficient decisions.

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