Editing IPCC:AR6/WGIII/Chapter-16 (section)

=== 16.4.3 Indicators to Assess the Innovation, Competitiveness and Distributional Outcomes of Policy Instruments ===

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If policy instruments are created to (at least partly) shape innovation for systemic transitions to a zero-carbon future, they also need to be evaluated on their impact on the whole socio-technical system ( [[#Neij--2006|Neij and Åstrand 2006]] ) and a wide range of goals, including distributional impacts and competitiveness and jobs ( [[#Stern--2007|Stern 2007]] ; [[#Peñasco--2021|Peñasco et al. 2021]] ). Given this and the current policy focus on green recovery and green industrial policy, we assess impacts on competitiveness and equity, although we primarily focus on innovation outcomes. Table 16.9 lists the selected set of indicators used to assess the impact of the policy instrument types covered in the right-hand column in Table 16.8. The table does not include technology diffusion or deployment because these are covered in the technological effectiveness evaluation criterion in Chapter 13. As noted in section 16.2, it is very difficult to measure or fully understand innovation with one or even several indicators. In addition, all indicators have strengths and weaknesses, and may be more relevant in some countries and sectors than in others. The literature assessing the impact of different policy instruments on innovation often covers just one of the various indicators listed in the second column of Table 16.9.

'''Table 16.9 | Outcomes (first row) and indicators (second row) to evaluate the impact of policies shaping innovation to foster carbon neutral economies.''' Sources: innovation outcomes indicators are sourced from Del Rio and Cerdá (2014), [[#Grubb--2021|Grubb et al. (2021)]] and [[#Peñasco--2021|Peñasco et al. (2021)]] ; the indicators under the competitiveness and distributional effects criteria are sourced from [[#Peñasco--2021|Peñasco et al. (2021)]] .

{| class="wikitable"
|-
| '''Policy instrument Outcomes'''

| '''Innovation'''

(Part of [[IPCC:Wg3:Chapter:Chapter-13|Chapter 13]] ‘Transformative potential’ evaluation criterion)

| '''Competitiveness'''

(Part of [[IPCC:Wg3:Chapter:Chapter-13|Chapter 13]] ‘Economic effectiveness’ evaluation criterion)

| '''Distributional impacts'''

(Defined in the same way as in Chapter13)

|-
| '''Examples of indicators used for each outcome in the literature'''

| R&amp;D investments, cost improvements, learning rates, patents, publications, reductions in abatement costs, energy efficiency improvements, other performance characteristics, firms reporting carbon saving innovation

| Industry creation, net job creation, export of renewable energy technology equipment, economic growth (GNP, GDP), productivity, other investments

| Level and incidence of support costs, change in spending on electricity as a percentage of total household spending, participation of different stakeholders, international equity (e.g., tCO 2 -eq per capita), unequal access between large vs. small producers or firms

|}

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