Transaction Costs of Low-Carbon Technologies and Policies: The Diverging Literature

42 Pages Posted: 20 Apr 2016

See all articles by Luis Mundaca

Luis Mundaca

Lund University

Mathilde Mansoz

Lund University - International Institute for Industrial Environmental Economics

Lena Neij

Lund University

Govinda R. Timilsina

World Bank - Development Research Group (DECRG)

Date Written: August 1, 2013

Abstract

Transaction costs are major challenge to moving forward toward low-carbon economic growth, as new technologies or policies tend to have higher transaction costs compared with those in the business as usual situation. However, neither a well-developed theoretical foundation nor a consensus interpretation is available for those transaction costs in the existing literature. The definitions and therefore the estimations of transaction costs vary across existing studies. The wide variations in the estimates could be attributed to several factors such as the very definitions and scope of transaction costs considered in the studies, the methodology for quantifying these costs, the type and size of low-carbon technologies, and complexities involved in the transactions. Nevertheless, the existing literature converges on addressing market failures, such as lack of information, in developing regulatory and institutional capacity to enhance private sector confidence in energy efficiency business as a key means to help reduce the transaction costs of low-carbon technologies.

Keywords: E-Business, Environmental Economics & Policies, Energy Production and Transportation, Economic Theory & Research, Debt Markets

Suggested Citation

Mundaca, Luis and Mansoz, Mathilde and Neij, Lena and Timilsina, Govinda R., Transaction Costs of Low-Carbon Technologies and Policies: The Diverging Literature (August 1, 2013). World Bank Policy Research Working Paper No. 6565. Available at SSRN: https://ssrn.com/abstract=2308288

Luis Mundaca (Contact Author)

Lund University ( email )

Box 117
Lund, SC Skane S221 00
Sweden

Mathilde Mansoz

Lund University - International Institute for Industrial Environmental Economics

Tegnersplatsen 4
Box 196
Lund, 22100
Sweden

Lena Neij

Lund University ( email )

Box 117
Lund, SC Skane S221 00
Sweden

Govinda R. Timilsina

World Bank - Development Research Group (DECRG) ( email )

1818 H Street NW
MSN3-311
Washington, DC 20433
United States

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