A novel approach for analyzing the effectiveness of the R&D capital for resource conservation: Comparative study on Germany and UK electricity sectors

摘要

Limited access to energy resources and increasing demand for mitigation of the environmental impacts have necessitated higher production efficiencies. Therefore, the promotion of R&D activities has been one of the main parts of national energy policies. In this research work, two methods are used for assessing the effectiveness of the R&D capital on resource conservation. First, by developing the resource-included knowledge production function of the energy sector and second, through direct assessment of the functionality of resource productivity from R&D capital. Based on official data provided by national statistical centers, a comparative analysis has been conducted to examine the effectiveness of R&D in the electricity generation sectors in the United Kingdom and Germany. In these analyses, non-renewable exergy cost is used as an index of resource depletion and environmental burden. It is shown that, due to non-economic energy transition policies, the inclusion of the R&D investment does not result in statistically meaningful elasticity of production for the R&D capital. However, according to the second method, it is shown that the R&D investment in the United Kingdom has been more effective in resource conservation than in Germany. Possible reasons for such differences are discussed and recommendations for further investigations are presented.