Political market failure? The effect of government unity on energy technology policy in industrialized democracies |
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Authors: | Alexandra E Cirone Johannes Urpelainen |
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Institution: | 1. Department of Engineering and Innovation, Faculty of Mathematics, Computing and Technology, The Open University, Milton Keynes MK7 6AA, UK;2. Department of Environmental Science and Technology, Cranfield University, Bedfordshire MK43 OAL, UK;1. Department of Industrial Engineering, School of Engineering, Seoul National University, San 56-1, Shillim-Dong, Kwanak-Gu, Seoul 151-742, Republic of Korea;2. Department of Industrial Engineering, Ajou University, San 5, Woncheon-dong, Paldal-gu, Suwon-si, Gyeonggi-do 443-749, Republic of Korea;3. Department of Industrial & Systems Engineering, Dongguk University-Seoul, Pil-dong, 3 ga, Joong-gu, Seoul 100-715, Republic of Korea;4. Department of Industrial Engineering, School of Engineering, Seoul National University, San 56-1, Shillim-Dong, Kwanak-Gu, Seoul 151-742, Republic of Korea |
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Abstract: | When do governments implement technology policies that allow society to solve social problems at a lower cost? Focusing on the case of energy, we argue that in industrialized democracies, severe social problems provoke an effective technology policy response when the government is unified. A unified government can easily strike the bargains required to secure political support for new technology programs. We test this theory against data on public energy research and development (R&D) in 22 OECD countries, 1980–2006. We find that as government fractionalization increases in a country, the sensitivity of public energy R&D to wasteful energy use, which presents economic and environmental difficulties to the society, declines. The analysis reveals a new reason for ineffective technology policies and contributes to the broad literature on political market failure. |
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Keywords: | Technology Energy policy Political economy Government Energy intensity Public policy |
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