The Role of Renewable Energy Policy and R&D in Renewables Diffusion

Abstract

This paper explores how investments in research and development (R&D) and government policies impact the growth of renewable energy in Brazil, Chile, and Colombia up to 2040. The study presents four scenarios to understand how different levels of R&D investment and the presence or absence of supportive policies affect the spread of renewable technologies such as solar and wind energy. The scenarios range from an optimistic one with high R&D funding and strong policy support to a worst-case scenario with low R&D efforts and weak policies. The findings emphasize the importance of solid government backing and strategic R&D investments in promoting renewable energy and increasing the number of green patents. On the other hand, scenarios with limited policy support and R&D funding show much slower growth, highlighting the challenges posed by economic constraints and tough market conditions. The study shows that strong renewable energy policies could boost renewable energy adoption by 100% to 200%. Overall, this research adds to the discussion on sustainable energy policies and provides useful insights for policymakers and stakeholders to develop strategies that maximize the potential of renewable energy in the region.