Jan Fagerberg
In this paper, I analyze the ongoing global green shift from an evolutionary (Schumpeterian) perspective. Understanding such large techno-economic shifts, their causes, dynamics, and implications, has been a recurrent theme in evolutionary economics, from Schumpeter onwards, and the discussion in the paper builds on insights from this literature. As I see it, the green shift is driven by the interaction of innovations in three interrelated areas, that is, renewable energy innovation; innovation in energy-using sectors; and energy infrastructure innovation, for example in energy storage and distribution. A number of key innovations from these three areas are identified, and their development during the last hundred years or so is explored, with special emphasis on the extent to which these innovations were selected and retained by the relevant environments into which they were introduced. I particularly focus on the various factors, including policy, that have influenced these processes. Finally, the lessons for evolutionary theorizing as well as policymaking supporting the global green shift are considered.