TY - JOUR
T1 - Incumbents' response to demand-side policies
T2 - The case of solar and wind power sectors
AU - Choi, Hyundo
N1 - Publisher Copyright:
© 2019 The Author(s).
PY - 2019/10/1
Y1 - 2019/10/1
N2 - This work examines incumbents' responses to two demand-side policies by focusing on their investment in new sustainable technologies. It focuses on how economic incentive and regulatory policies shape the market environment and this affects incumbents' investment in new technologies. By using mediation and difference-in-difference regression models, it examines incumbent utilities' investment in solar and wind power plants. It reveals that incumbent utilities under the economic incentive policy more invest in the solar and wind power than those under the regulatory policy, as it places stronger competitive pressure on incumbent utilities to adapt to the new technology. Further, incumbents prefer alternative technologies complementary to their existing competences and expand their investment in a global market under policy-induced competitive pressures.
AB - This work examines incumbents' responses to two demand-side policies by focusing on their investment in new sustainable technologies. It focuses on how economic incentive and regulatory policies shape the market environment and this affects incumbents' investment in new technologies. By using mediation and difference-in-difference regression models, it examines incumbent utilities' investment in solar and wind power plants. It reveals that incumbent utilities under the economic incentive policy more invest in the solar and wind power than those under the regulatory policy, as it places stronger competitive pressure on incumbent utilities to adapt to the new technology. Further, incumbents prefer alternative technologies complementary to their existing competences and expand their investment in a global market under policy-induced competitive pressures.
KW - competitive pressure
KW - demand-side policies
KW - economic incentive policy
KW - incumbent
KW - regulatory policy
KW - sustainable technologies
UR - http://www.scopus.com/inward/record.url?scp=85074392203&partnerID=8YFLogxK
U2 - 10.1093/scipol/scz017
DO - 10.1093/scipol/scz017
M3 - Article
AN - SCOPUS:85074392203
SN - 0302-3427
VL - 46
SP - 648
EP - 660
JO - Science and Public Policy
JF - Science and Public Policy
IS - 5
ER -