Exploring the Role of Servitization to Overcome Barriers for Innovative Energy Efficiency Technologies – The Case of Public LED Street Lighting in German Municipalities

39 Pages Posted: 8 Mar 2016

See all articles by Friedemann Polzin

Friedemann Polzin

Sustainable Business Institute (SBI); Utrecht University - School of Economics

Paschen von Flotow

Sustainable Business Institute (SBI)

Colin Nolden

University of Sussex - Science and Technology Policy Research Unit (SPRU)

Date Written: February 24, 2015

Abstract

In this paper we analyse the case for public application of LED street lighting. Drawing from the energy services literature and transaction cost economics, we compare modes of lighting governance for modernisation. We argue that servitization can accelerate the commercialisation and diffusion of end-use energy demand reduction (EUED) technologies in the public sector if third party energy service companies (ESCo) overcome technological, institutional and economic barriers that accompany the introduction of such technologies resulting in transaction costs. This can only succeed with a supportive policy framework and an environment conducive towards the dissemination of specific technological and commercial knowledge required for the diffusion process.

Keywords: energy efficiency, servitization, contracting, ESCo, modes of governance, LED, lighting

Suggested Citation

Polzin, Friedemann and Polzin, Friedemann and von Flotow, Paschen and Nolden, Colin, Exploring the Role of Servitization to Overcome Barriers for Innovative Energy Efficiency Technologies – The Case of Public LED Street Lighting in German Municipalities (February 24, 2015). SWPS 2015-07, Available at SSRN: https://ssrn.com/abstract=2743214 or http://dx.doi.org/10.2139/ssrn.2743214

Friedemann Polzin (Contact Author)

Sustainable Business Institute (SBI) ( email )

Burgstr. 4
Oestrich-Winkel, 65375
Germany

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

Paschen Von Flotow

Sustainable Business Institute (SBI) ( email )

Burgstr. 4
Oestrich-Winkel, 65375
Germany

Colin Nolden

University of Sussex - Science and Technology Policy Research Unit (SPRU) ( email )

Mantell Building
Falmer
Brighton BN1 9RH UK, Sussex
United Kingdom

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