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Innovation Dynamics and Policy in the Energy Sector

Building Global Energy Markets, Institutions, Public Policy, Technology and Culture on the Texan Innovation Example

  • 1st Edition - May 6, 2021
  • Latest edition
  • Author: Milton L. Holloway
  • Language: English

Innovation Dynamics and Policy in the Energy Sector discusses the process and future of global innovation in the energy sector based on the innovation leadership example of Te… Read more

Description

Innovation Dynamics and Policy in the Energy Sector discusses the process and future of global innovation in the energy sector based on the innovation leadership example of Texas. The book proposes that the positive dynamics of Texas energy sector innovations arises from a confluence of factors, including supportive institutions, the management of technological change, competitive markets, astute public policy, intraindustrial collaboration, a cultural focus on change and risk-taking, and natural resource abundance. Heavily case-study focused chapters review the fundamental drivers of innovation, from key discoveries at Spindletop; the proliferation of oil production through major field development; through electric sector deregulation; and recent innovation in hydraulic fracking, renewable integration, and carbon capture. The work closes to argue that sustainable global innovation addressing the twin challenges of climate change and the energy transition must be driven by the promotion of competition and risk-taking which continually promotes the development of ideas, a process jointly funded by the public and private sectors and supported by collaborative and competitive institutions.

Key features

  • Reviews the fundamental drivers of energy innovation and examines each driver through 10 key episodes in the Texas energy innovation experience, inclusive of guidance to the international research community based on their example.
  • Establishes the critical impact of constructive energy policy, energy technology, and power markets in cultural settings that invite change and risk-taking and proposes them as key factors in building sustainable innovation.
  • Consolidates current research and practice related to innovation from the perspectives of established (economics and engineering) and emergent (innovation economics and econometrics) disciplines.

Readership

Graduate students and early career researchers working in any aspect touching innovation economics and energy transition issues, including energy economics, environmental economics, behavioral economics and energy research in the social sciences. High relevance to policymakers and energy planners responsible for climate policy or sustainable development of energy markets. Energy consultants. Members / staff at energy associations – electric utilities, oil and gas, and solar and wind associations, environmental activist groups, engineering, public policy and economics associations.

Table of contents

PrefaceAddendum1. The dynamics of innovation and technology in a market economyIntroductionInnovation definedThe rate of growth of technological changeThe dependence of economic growth on technological changeHuman capital and economic growthTreatment of time in economics and the lawProperty rights and innovationGovernment’s ability to advance innovationEconomic models of innovation in the energy sectorOverview of the Texas energy sector innovation experienceWorked example2. The common international energy innovation driversEnergy-intensive economies: Texas and US ranking among leading countriesThe international energy and associated organizations: vehicles for innovationWorld Coal AssociationWorld Petroleum CouncilInternational Renewable Energy Agency (IRENA)Global Wind Energy CouncilInternational Solar Energy SocietyInternational Atomic Energy Agency (IAEA)Other international organizationsCurrent status of the global economy in the sixth Kondratieff cycleGovernmental structure influence on energy sector innovationMeasuring the common factors for driving changeUS companies with strong ties to Texas: spreading innovation throughout the globe3. A game change at SpindletopThe eventThe Spindletop innovationsImpacts of the Spindletop innovations4. From chaos to order in the East Texas FieldThe eventThe East Texas Field induced innovationsThe interplay of policy, markets, and technologyImpacts of the East Texas innovations5. Concessions abroad and the disciplined rule of captureThe eventInnovation US stile and the follow up by OPECThe interplay of policy, markets, and technologyImpacts of the institutional innovations6. West Texas and the Permian Basin early innovationsThe eventThe Permian Basin innovationsThe interplay of policy, markets, and technologyImpacts of the Permian Basin innovations7. Panhandle Field and natural gas flaringThe largest natural gas discovery in the United StatesInterstate pipelinesThe complexity of natural gas regulationNatural gas flaringNatural gas proration and ratable takeIndustrial marketing programs and deregulationThe innovations in the Texas natural gas marketsThe interplay of policy, markets, and technologyImpacts of the natural gas market and institutional innovations8. Upheaval in the energy markets: the Arab Oil Embargoand the Iranian CrisisWhat happenedThe federal responseThe Texas responseInterplay of policy, technology and markets following the energy crisisMeasuring the impacts of entities createdGEAC (1973 commission) inputGEAC (1973 commission) outputGEAC (1975 Texas state agency) inputGEAC (1975 Texas state agency) outputGEAC (1975 Texas state agency) impactTexas Energy Advisory Council (TEAC, 1977 Texas state agency) inputTexas Energy Advisory Council (TEAC, 1977 Texas state agency) outputTexas Energy Advisory Council (TEAC, 1977 Texas state agency) impactTENRAC (1979 Texas State Agency) inputTENRAC (1979 Texas State Agency) outputTENRAC impacts9. Electric industry deregulation and competitive marketsThe contextTexas restructuringThe Texas market structure and operationsPerformanceThe interplay of policy, markets, and technologyImpacts of the restructured electric market innovations10. Hydraulic fracturing: the Permian Basin challenges Organizationof Petroleum Exporting Countries leadershipThe beginningNatural gas from shaleCrude oil from shale and tight sandsInterplay of policy, technology, and marketsImpacts of the fracking innovations11. The oil and gas state adds renewable wind and solarRenewable energy definitionWind energy electric generationSolar energyTransmission capacityReliabilityInterplay of policy, technology, and marketsImpacts of renewables innovation12. Capture and global warming: the technology and regulation debateGlobal warming and CO2 emissionsInterplay of policy, technology, and marketsDirect regulation of CO2 emissions from power plantsHope around short-term impactsConcerns about long-term impacts13. The road ahead: ideas are keyFrom then until nowWhat comes nextThe future dynamics of policy, technology, and marketsA recommendationAppendix A: The principle components of the energy systemAppendix B: Overview of energy market and regulatory structures and US influence abroadAppendix C: Recent developments in energy technology and markets

Product details

  • Edition: 1
  • Latest edition
  • Published: May 11, 2021
  • Language: English

About the author

MH

Milton L. Holloway

Milton Holloway holds a Bachelor of Science (1966) and Master of Science (1968) degrees in Applied and Resource Economics from Texas Tech University and a Ph.D. in Applied Economics from Oregon State University (1972). He is founder and President of Resource Economics, Inc., an economic consulting firm in Austin, Texas. His professional experience includes consulting, university teaching (in Texas and Mexico) and direction of Texas energy policy and R&D agencies. Holloway’s primary consulting, research and teaching interests have focused on applied economics and natural resource conservation in both public and private sector venues. During the decade following the Arab Oil Embargo of 1973 he directed Texas energy policy agencies focused on energy policy and new technology R&D. Under Holloway’s leadership (alongside others) Texas adopted the first ever comprehensive Texas energy policy, and recommended energy policy changes to the federal government. Following the deregulation of Texas electric utilities in 2005 Holloway helped organize, and then directed, a Texas non-profit organization - the Center for the Commercialization of Electric Technologies (CCET) whose purpose was to promote technological and institutional innovation in the Texas electric market. The state agency roles of the 1970s and early 1980s included Executive Director appointments by two Texas Governors with Senate confirmation. The CCET appointment as President and COO was made by the organization’s private sector Board of Directors.
Affiliations and expertise
Founder and President, Resource Economics, Inc., Austin, Texas, USA

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