The transition to clean energy will require a significant reallocation of technological investments away from fossil energy sources towards cleaner alternatives. This column investigates whether leveraging the technological capabilities in the fossil energy supply chain can help incentivise this reallocation with the required speed. Using data from Norway, the authors highlight an underexplored channel for renewable technologies - lower profitability in the fossil energy sector led to reallocation of R&D resources within firms, triggering a shift towards clean innovation.

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1 May 2025

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Vox EU

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https://cepr.org/voxeu/columns/how-oil-price-crash-sparked-clean-innovation-insights-norway

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