Wegner, M-S, Hall, S orcid.org/0000-0002-1558-7081, Hardy, J et al. (1 more author) (2017) Valuing energy futures; a comparative analysis of value pools across UK energy system scenarios. Applied Energy, 206. pp. 815-828. ISSN 0306-2619
Abstract
Electricity markets in liberalised nations are composed primarily of private firms that make strategic decisions about how to secure competitive advantage. Energy transitions, driven by decarbonisation targets and technological innovation, will create new markets and destroy old ones in a re-configuration of the power sector. This research suggests that by 2050 up to 21bnGBP per year of new financial value is available in the UK electricity system, and that depending on scenario, these new values represent up to 31% of the entire electricity sector. To service these markets business model innovation and new firm strategies are needed in electric power provision. Energy scenarios can inform strategic decisions over business model adaptation, but to date scenario modelling has not directly addressed firm strategy and behaviour. This is due in part to neo-classical assumptions of firm rationality and perfect foresight. This research adopts a resource based view of the firm rooted in evolutionary economics to argue that quantifying the relative size of the markets created and destroyed by energy transitions can provide useful insight into firm behaviour and innovation policy.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2017 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/BY/4.0/). |
Keywords: | Electricity Markets; Energy Scenarios; Value Pools; Evolutionary Economics |
Dates: |
|
Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > School of Earth and Environment (Leeds) > Sustainability Research Institute (SRI) (Leeds) |
Funding Information: | Funder Grant number EPSRC EP/N029488/1 |
Depositing User: | Symplectic Publications |
Date Deposited: | 04 Sep 2017 16:44 |
Last Modified: | 22 Jul 2020 13:22 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.apenergy.2017.08.200 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:120757 |