Dutch research has revealed that energy subsidies can delay the dissemination of new energy-saving technologies. Furthermore, companies do not always want to get rid of the old technology straightaway and therefore new ideas are confined to the top shelf for longer.
Ph.D. student Peter Mulder demonstrated that subsidies for investments in energy-saving can have an adverse affect in the longer term. These subsidies can be counter-effective, since they only stimulate investment in existing technology. Consequently, companies are less inclined to wait for the arrival of a new and better technology.
In most cases companies do not use the latest, most energy efficient and cost-effective machines. This seems to contradict economic principles which state that companies aim to realise as many cost savings as possible. Peter Mulder discovered that new technologies spread slowly because companies have a number of reasons for postponing investments in the latest technologies.
Lydie van der Meer | NWO
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