Background

Economics of Energy Innovation and Systems Transition Project (EEIST)

The project delivered empirically validated modelling tools capable of assessing the impact of energy, innovation and technology-related policy choices to help decision-makers make better decisions on effective policies.Visit this external website to learn more.

Year: 2020 Current Project

EEIST in Numbers

9

Reports

5

Policy Briefs

3

Official COP Side-Events

  • Overview

    The Economics of Energy Innovation and System Transition (EEIST) project brings together leading experts in all fields of complexity science and innovation scholarship with decision-makers, via a delivery team composed of leading universities and research organisations from Brazil, China, India and the UK.

    EEIST’s strategic and co-created engagement with Brazil, China, India, the UK and the EU will be delivered via a network including technical experts and decision-makers from the public and private sectors, implementing clear and practical complexity-based modelling solutions for informing decision-making and planning for low-carbon innovation and technological change.

    Solutions will be delivered within the context of existing science-policy interfaces in Brazil, China India, the UK and the EU in cooperation with BEIS. 

  • Objectives

    The project will deliver empirically validated modelling tools capable of assessing the impact of energy, innovation and technology-related policy choices, at micro and macro levels, on the short- and long run performance along an economic-environmental spectrum with multiple dimensions (notably emissions, GDP, employment, inequality, sectoral and geographical distribution), under risk opportunity’ assessment framework. These tools, framework and empirical evidence will be made available and maintained for use by stakeholders beyond the end of the project. EEIST’s pioneering approach adds value to existing models by embedding the risks and opportunities of innovation into policy appraisal. 

  • Partners

    University Of Exeter (lead), University College London, University of Cambridge, University of Oxford, Anglia Ruskin University, Cambridge Econometrics, Climate Strategies, Scuola Superiore Di Studi Universitari E Di Perfezionamento Sant’anna, The Energy and Resources Institute, World Resources Institute – India Office, World Resources Institute – Washington Dc Office, Tsinghua University, The Energy Research Institute, Universidade Federal Rio De Janeiro, Universidade Estadual De Campinas, Fundação Getulio Vargas Brasilia. 

    Climate Strategies acts as a neutral convener of 5 Communities of Practice, working closely with coordinators for each region.  

    Visit this external website to learn more and see the project’s latest publications.

     

  • Publications

    Main Reports

    EEIST Synthesis Report 

    The Economics of Energy Innovation and System Transition (EEIST) project has worked to develop and apply analytical concepts and methods that can be useful to policymakers in this context of innovation and structural change. This Synthesis reports some of the key findings from the project.

    The New Economics of Innovation and Transition: Evaluating Opportunities and Risks

    The report, The New Economics of Innovation and Transition: Evaluating Opportunities and Risks, highlights that some of the greatest successes in the clean energy transition so far, such as dramatic cost reductions in wind and solar power and LED lighting, have come from policies to shape markets that were not generally those recommended by conventional economic analysis. To replicate these successes, the report calls on policy makers to learn the lessons and think differently about the dynamics of change in our economies.

    Ten Principles for Policy Making in the Energy Transition

    Ten Principles for Policy Making in the Energy Transition, offers governments new methods to use policy to accelerate clean technology transitions to drive action on climate goals.

    New economic models of energy innovation and transition

    This report represents a major effort to demonstrate the value of new economic modelling to policy questions relevant to the low-carbon transition. Through 15 real-world, global, regional and national case studies, developed in partnership with policy stakeholders, the report demonstrates how new economic modelling approaches can deliver crucial insights for decision makers. It also provides guidance on how to evaluate and choose between different modelling approaches and how to support their use.

    Other Reports

    Energy Innovation and System Transition in India: What Do Models Tell Us?

    This report aims (i) to provide the specific context of the energy transition in India, including previous successes and lessons learned, and the potential challenges it faces both in economic development and decarbonisation; (ii) to introduce the Risk Opportunity Analysis (ROA) approach to the policy context in India, which represents the flagship policy appraisal fundamental of the EEIST programme, and (iii) to present results from a modelling comparison exercise with both simulating and optimising models to explain the key differences and complementarities between existing and new modelling approaches through model-specific information and data.

    Power Sector Futures in China: A Multi-Model Approach to Understanding China’s Carbon-Neutral Pathways and Power Sector Reform

    This report outlines power sector reforms developing in China and the increasingly complex landscape of climate and energy policies intended to support carbon neutrality.

    Energy Transition in Brazil: Innovation, Opportunities and Risks

    This report summarises work performed during the past three years on innovation in the energy sector and the impact of environmental policies on trade and emissions, as part of an international programme on the Economics of Energy Innovation and System Transition (EEIST), with results from the programme in Brazil.

    Net-zero transition planning for pension funds and other asset owners

    We have left it too late to tackle climate change incrementally. We now require a dramatic acceleration of progress through transformational change across society and the global economy. The pensions industry has an undeniably important role to play in supporting the journey to net zero, not least through investing for a world that its beneficiaries would want to live in. While this paper focuses on the UK, it is relevant for pension funds globally.

    Policy Briefs

    Follow the link to be directed to EEIST’s policy briefs, including:

    Policies to Pass the Tipping Point in the Transition to Zero-Emission Vehicles, 2023 by Aileen Lam, Jean-Francois Mercure, Simon Sharpe.

    The role of green hydrogen and ammonia in a low-cost, resilient power system in India: national grid connection versus energy islands, 2023 by Zac Cesaro, Matthew Ives, Rasmus Bramstoft, René Bañares-Alcántara, Peter Barbrook-Johnson and Anupama Sen.

    Socio-Economic Impacts of Coal Transition in China: A Regional Challenge, 2023 by Alex Clark, Weirong Zhang, Peter Barbrook-Johnson and Anupama Sen.

    Hidden disparities on the road to net-zero. Identifying areas of opportunity and risk, 2023 by Cormac Lynch, Yeliz Simsek, Jean-François Mercure, Femke Nijsse.

    Is a Solar Future Inevitable? How to shape policies to capture the opportunities of cheap solar, 2022 by Femke J.M.M. Nijsse, Jean-Francois Mercure, Nadia Ameli, Francesca Larosa, Sumit Kothari, Hector Pollitt, Jamie Richman, Simon Sharpe, Pim Vercoulen.

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