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Introduction to socio-technical approach of the PowerPoint Presentation, PPT - DocSlides

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Centre on Innovation and Energy Demand (CIED). Prof. Frank . Geels. (Univ. of Manchester). CIED . summerschool. , 10-12 July 2017. . Structure. 1. Introduction: Energy efficiency debate and policy-relevant knowledge questions. ID: 620070

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Slide1

Introduction to socio-technical approach of theCentre on Innovation and Energy Demand (CIED)Prof. Frank Geels (Univ. of Manchester)CIED summerschool, 10-12 July 2017

Slide2

Structure

1. Introduction: Energy efficiency debate and policy-relevant knowledge questions

2. Low-energy innovation and transitions

3. CIED’s socio-technical approach

4. CIED research themes

5. Conclusion

Slide3

1. Introduction

Energy demand reduction and energy efficiency important new policy topics

* DECC (2012)

The

Energy Efficiency

Strategy

* DECC (2014)

UK National Energy Efficiency Action Plan

* IEA (2014),

Capturing the Multiple Benefits of Energy Efficiency

Slide4

Also some successes

Fuel-efficient cars, light bulbs, boilers, insulation, double glazing are part of explanation (besides crisis, de-industrialization, ‘peak car’ etc..)

UK final energy consumption by sector (DECC, 2014)

Slide5

Electricity consumption by domestic appliance, by broad type, UK (DECC, 2015)

Slide6

But problems for middle- to long-term

Expected rising demand in 2020s (without new policy)

UK final energy consumption compared against carbon plan scenarios, 1980-2050 (DECC,

2012)

Slide7

Diminishing returns of established options (limited further diffusion potential of ‘low hanging fruit’)

Degree of penetration/diffusion of various energy efficient measures in UK homes (DECC, 2012)

Slide8

 Energy efficiency revolution

So, long-term demand strategy requires an

energy efficiency revolution

T

he

Government wants to revolutionise the UK’s approach to energy efficiency” (DECC, 2013: 7).

Slide9

Requires new knowledge

“Understanding how

people and communities

might respond to things like the introduction of new energy technologies, electric vehicles or insulation programmes is crucial to ensuring that our policies can be successful”

(p

. 40).

(

DECC,

2012,

Science

and Innovation

Strategy)

Slide10

DECC’s (2012)

Energy Efficiency Strategy

(p. 56)

Currently we lack deep understanding of the complexities of what really drives energy demand and how to change it at user and provider level. If these complexities are to be understood, energy demand research must adopt inter-disciplinary, multi-agency approaches to deliver understandings of:

* The

lifestyle

and social drivers of the demand for energy services

* Changing

technologies

and how they are adopted at the point of use

* The

institutional and policies framework

within which technical and social decisions are made.

* The

interactions between all of these

.”

 CIED research centre aims to address these questions + wants to interact with stakeholders (‘knowledge co-development’)

Slide11

2. Low-energy innovation and transitions

* Innovation is about

new

options

* Which

deviate

in one or more dimensions from existing situation

* Entail

uncertainty

(about price/performance, precise demand, impact) [

which creates problems for calculations and models

]

* Offer substantial improvement promise (especially more radical innovations and new systems)

* But also encounter various ‘barriers’: economic, social, political, cultural, infrastructural

Slide12

Variety of low-energy innovations

Energy efficiency revolution requires

shift in kinds of ‘solutions’:

From individual (well-known) technical measures to more novel low energy innovations and systems (social

and technical)

Slide13

3. CIED’s socio-technical approach

Two general assumptions:Innovation is not R&D (invention),but introducing novelties in marketsand other environments Creation or reconfiguration of socio-technical systems

Slide14

Innovation as building or reconfiguring socio-technical systems

Slide15

2) Low-energy innovation as a multi-actor process

From ‘individuals and firms’ to wider social systems:* Economics: Investments, prices, markets, competition* Policy and politics: Policy goals, instruments, institutions* Socio-cultural: Public debates, beliefs, motivations, practices

Slide16

So, current policy framing is too narrow

Currently

: Mainstream

economics

focus

on

individuals

(mostly ‘firms’ and ‘households

’)

Underlies emphasis on four

‘barriers’ (DECC, 2012,

Energy Efficiency Strategy

)

1. Embryonic markets

2. Information

3.

Misaligned financial incentives (e.g. landlord-tenant)

4. Undervaluing energy efficiency

This approach neglects non-economic barriers and range of other relevant actors and contexts.

Slide17

Multi-level perspective on socio-technical transitions

* Radical innovation in niches (variation/novelty)* Struggling against existing regimes* In context of broader ‘landscape trends’

Slide18

Niche-level: Nurturing radical innovation

Niches offer protection from mainstream market selectionOften carried by entrepreneurs, outsiders, communities, small social networksEmphasis on learning, experimentation, upscaling, enrolment of more actors, upscaling

Slide19

Endogenous momentum of niche-innovations

Economic

and

business dynamics:

a)

Learning-

by

-

doing

(

learning

curves)

b) Increasing returns to adoption (

scale

economies

, network externalities)

c) Strategic games between firms and innovation races (‘jockeying for position’)

Socio-cognitive

and

cultural

dynamics:

Expanding

social

networks

Building skills,

knowledge

,

capabilities

Develop

positive

discourses/

visions

to

create

socio-political legitimacy

Policies

, power and politics:

Supportive

regulations

, subsidies, investment

Requires

advocacy

coalitions

with

political

power (business,

NGOs

, media)

Slide20

Regime-level: Lock-in, path dependence, incremental change

Economic

:

Scale advantages, low cost

Sunk investments (competence, infrastructure)

Social/organizational

:

Incumbent firms have vested interests, mind-sets, routines

Alignment between social groups (

social capital

)

User practices, values, life styles

Politics and power:

Uneven playing field (policies favour status quo)

Opposition to policy change from vested interests

Slide21

Socio-technical landscape

Exogeneous backdrop Slow-changing secular trends (demographics, macro-economics, ideology, climate change) and shocks (economic crisis, oil shock, wars)

Slide22

Dynamic multi-level perspective on socio-technical transitions

Slide23

4. CIED research themes

4.1. Emergence of low-energy innovations

4.2. Diffusion

of low-energy innovations

4.3. Impact

of low-energy innovations

Slide24

4.1. Emergence of niche-innovations

Protected niches as ‘proto-markets’ that enable

1)

Learning

processes

at multiple dimensions:

technical aspects and design specifications

market and user preferences

cultural and symbolic meaning

infrastructure and maintenance networks

industry and production networks

regulations and government policy

societal and environmental effects

2)

B

uilding

of

social

networks/constituency

behind

innovation (which also facilitated ‘broad learning’)

3) Articulation of

visions

that provide orientation for learning, attract attention/funding and create enthusiasm/interest.

Slide25

Radical innovations emerge through sequence of projects: a) up-scaling: more and larger projects, linking to wider processesb) deepening: articulation of rules/best practices by aggregating lessons and circulating ideas and people between projectsc) broadening: include more actors, expand application domains

Experiments, demonstration projects as concrete carriers

Slide26

4.2. Diffusion

Diffusion of low-energy innovation is difficult because of

1) Individual barriers to adoption

:

- Split incentives

- Perceived high upfront costs

- Lack of access to capital

- Lack of (technical) skills

- Lack of (reliable) information

-

Limited

interest in energy issues (motivation)

- Resistance to change (habits, routines, hassle-factor)

- Disappointing results (cost savings)

Slide27

2) Mis-match with existing regime/contexts:Weakening policiesDecreasing political priorities (‘green crap’)Absence of reliable suppliersDecreasing public discourse and sense of urgencyUser routines and attachment to cars and individual boilersPolicy dilemmaDiffusion is harder for more radicalInnovations that may hold greater long-term potential

Slide28

We aim to investigate multi-dimensional interactions between green niche-innovations and existing regimes

1)

Technical

dimensions: cost/performance improvements, investments, learning curves, infrastructure

2)

Busines

s: new entrants/incumbents, supply chain, skills

3)

Policy/politics

: political debates, policy learning, policy mix

4)

Cultura

l debates and meanings

5

) Dynamics of

user practices

: learning, preferences

Slide29

4.3. Impact

System innovation/transitions can have major influences on demand and consumer practices [

many historical examples)

Impacts of

low-energy

innovations are hard to predict because:

1) People adapt behaviour, preferences, norms

2) Knock-on effects in wider systems (replacing one component may trigger further change)

Rebound effects particularly worrisome

Slide30

Lower lightingcosts

Use more illumination for longer

Lower lighting bills

Holiday in Spain

Less

energy

More

energy

New lighting applications (more places lit to higher levels for longer)

Changed standards, norms, practices

More

energy

System impacts and rebound effects

Slide31

5. Conclusion

Energy efficiency revolution needed (and possible)

Socio-technical approach complements techno-economic approach

Asks different (more

processual

) questions rather than ‘barriers to adoption’ or ABC (attitude, behaviour, choice)

Part of wider (exiting) debate on sustainability transitions, where new scholars can make relevant contributions!

Slide32

Slide33

Policy strategy for transitions

Two-pronged policy strategy:

1) Niche-level: Stimulate variety/innovation

- Long-term visions + short-term action (projects)

Technical + social/behavioural change (system innovation)

Incumbents + outsiders

2) Regime-level: Tighten selection

environment

(

taxes, regulations, incentives)

Slide34

Variety of policy instruments (policy mix)

Command-and-control

(to

p-down steering)

Market model

(incentivize bottom up agents)

Policy networks

(convening, orchestrating processes)

Governance instruments

Formal rules,

regulations,

laws

Financial incentives (subsidies, taxes)

Learning processes, projects/experiments,

vision/scenario workshops, strategic

conferences,

public debates, platforms

Foundation scientific disciplines

Classic political science

Neo-classical

economics

Sociology, innovation studies, neo-institutional political science


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