Entrepreneurial Energy Companies Can Innovate With The Help Of Regulators Clearing The Way
How regulatory policies are implemented can make a huge difference for entrepreneurs in clean technology. In a study, we found that giving state-level regulators more discretion in approving hydropower facilities in the United States led to faster adoption of this clean energy source.
Distributed power generation, such as this fuel cell installation, requires new ventures to work with energy regulators. Business Wire, CC BY
We reviewed regulatory approvals of entrepreneurial hydroelectric power facilities from 1978 to 2014 and found that, on average, when regulators had a relatively high level of discretion, entrepreneurs received a license 22.5% sooner. We calculated hydropower ventures that use innovative run-of-the-river, pumped storage and marine technologies can generate up to US$7,7...