Should public policy support disruptive consumer innovations for climate change? Charlie Wilson APPAM International Conference Barcelona, July 2019 Starting Grant #678799 silci.org
Should public policy supportdisruptive consumer innovations
for climate change?
Charlie WilsonAPPAM International Conference
Barcelona, July 2019
Starting Grant #678799
silci.org
Limiting warming to 1.5°C requires 45% reduction in CO2 emissions by 2030 (IPCC 2018)
Source: Global Carbon Project (2018) Global Carbon Budget 2018
very rapid emission reductions needed tomeet public policy goals
typically framed as asupply-side problem
consumption practice potentially disruptive consumer innovations
driving (ICE) cars with low
occupancycar-share
e-bikes‘taxi-bus’ ride-share car-share MaaS
driving (ICE) cars with low
occupancy
consumption practice potentially disruptive consumer innovations
consumption practice incumbent firms, service providers
markets, regulations
infrastructures, norms
driving (ICE) cars with low
occupancyautomakers,
garages, dealersrevenue-raising
taxationparking,
transit usage, ownership
e-bikes‘taxi-bus’ ride-share car-share MaaS
driving (ICE) cars with low
occupancy
consumption practice potentially disruptive consumer innovations
e-bikes‘taxi-bus’ ride-share car-share MaaS
diet gamification
online food hubs
P2P food sharing
11th hour apps
recipe boxes
driving (ICE) cars with low
occupancy
doing big (meaty)
supermarketfood shops
consumption practice potentially disruptive consumer innovations
e-bikes‘taxi-bus’ ride-share car-share MaaS
diet gamification
online food hubs
P2P food sharing
11th hour apps
recipe boxes
driving (ICE) cars with low
occupancy
manually controlling
deviceswhenever
needed
doing big (meaty)
supermarketfood shops
consumption practice potentially disruptive consumer innovations
P2Pgoods
internet of things
smart appliances
smart homes
heat pumps
e-bikes‘taxi-bus’ ride-share car-share MaaS
P2Pgoods
internet of things
smart appliances
smart homes
heat pumps
PV + storage
P2P electricity
vehicle-to-grid
time-of-use pricing
demand response
diet gamification
online food hubs
P2P food sharing
11th hour apps
recipe boxes
driving (ICE) cars with low
occupancy
manually controlling
deviceswhenever
needed
usinggrid-supplied
energy whenever
needed
doing big (meaty)
supermarketfood shops
consumption practice potentially disruptive consumer innovations
Should public policy support disruptive consumer innovations for climate change?
yes: CO2 emission reduction is a public good(cf. grants for energy efficiency, carbon pricing …)
Should public policy support disruptive consumer innovations for climate change?
yes: CO2 emission reduction is a public good(cf. grants for energy efficiency, carbon pricing …)
yes: disrupting consumption practices may help other policy objectives (e.g., healthy eating)
yes: overlap with strategic research & innovation objectives (e.g., industrial strategy)
Should public policy support disruptive consumer innovations for climate change?
yes: CO2 emission reduction is a public good(cf. grants for energy efficiency, carbon pricing …)
yes: disrupting consumption practices may help other policy objectives (e.g., healthy eating)
yes: overlap with strategic research & innovation objectives (e.g., industrial strategy)
but .. rapid, disruptive change has negative impacts
De-risking disruption (1): trial innovations in market niches to enable policy learning
(area-based) demonstration programmes for testing -
new business modelsnew infrastructures
new policy instruments
new user roles
De-risking disruption (1): trial innovations in market niches to enable policy learning
(area-based) demonstration programmes for testing -
new business modelsnew infrastructures
new policy instruments
new user roles
new regulatory frameworks
De-risking disruption (2): engage constructively with ‘losers’ to reduce transitional inequities
political economics is arguably the principal brake on CO2 emission reductions
De-risking disruption (2): engage constructively with ‘losers’ to reduce transitional inequities
political economics is arguably the principal brake on CO2 emission reductions
retraining, community investment, industrial policy, compensationcf. swords into ploughshares
De-risking disruption (3): support diversity to avoid premature lock-in to new incumbency
scale economies & network effects in digital platforms can lead to rapid market dominance … Uberisation
De-risking disruption (3): support diversity to avoid premature lock-in to new incumbency
scale economies & network effects in digital platforms can lead to rapid market dominance … Uberisation
public policy should play an influential role in the ‘selection environment’ for early-stage innovationse.g., market access in exchange for
robust evidence of CO2 reductions
e-bikes‘taxi-bus’ ride-share car-share MaaS
Should public policy support disruptive consumer innovations for climate change?
yes: CO2 emission reduction is a public good
but .. rapid, disruptive change has negative impacts which can be mitigated:
- trials for policy learning- engagement with ‘losers’- support for diversity
but .. urgency sets up tensionswith continuity & (near-term) equity
Should public policy supportdisruptive consumer innovations
for climate change?
Charlie WilsonAPPAM International Conference
Barcelona, July 2019
Starting Grant #678799
silci.org
automakers, garages, dealers
revenue-raising taxation
parking,transit usage,
ownership
renovation SMEs, non-ICT manufacturers
data & privacy
wireless & 4G networks,
boundaries of home
centralised utilities
grid access
transmission networks,
passiveconsumption
large retailers & suppliers
urban form, high streets,
land use
competition, health &
safety compliance
consumption practice incumbent firms, service providers
markets, regulations
infrastructure, norms
driving (ICE) cars with low
occupancy
manually controlling
deviceswhenever
needed
using grid-supplied energy
whenever needed
doing big (meaty)
supermarketfood shops