**3.2. Matching the barriers in technology diffusion with the functions of national and international institutions**

Section 2.3 illustrated technology-specific barriers among different technologies. Section 3.2 attempts to match those barriers with the functions of national and international institutions that were identified in Section 3.1.

The case studies on wind as well as on hybrid vehicles and LED indicated that difficulties associated with IPRs are major barriers in technology diffusions. Indeed, IPRs are complex issues and providing opportunities to learn about the issues can be an important institutional arrangement as the first step. Ockwell, D., J. Watson et al. (2009), on the case of wind in India, states that "there was a need to create awareness among the industry players who do not have deeper understanding of implications of IPR rules and regulations, including those in the context of WTO regime." Preparing patent pools for licensing inventions is often discussed as a necessary arrangement in diffusing clean energy technologies but it requires careful institu‐ tional design not to remove incentives for the private sector and discourage its innovational efforts. At the international level, the World Intellectual Property Organization (WIPO) can facilitate such venues for the private sector in the developing countries to learn about IPRsrelated issues.

The case study on LED identified the size of the market as a major barrier. This case, together with the case on building energy efficiency, also pointed out high capital cost as a major barrier. In order to overcome these barriers, the roles of institutions in facilitating and supporting finance are important. On LED, Ockwell, D., J. Watson et al. (2007) states that "as government is already promoting PV integrated energy efficient lighting systems for rural lighting applications, incentives could be provided for LED based PV integrated systems." As for the case on biomass, low priority in finance is recognized as a major barrier. In this case, knowledge sharing and coordination is the key in overcoming the barrier in technology diffusion. At this point, Ockwell, D., J. Watson et al. (2007) demonstrates that "all the briquetting machine manufacturers felt that there is practically no collaboration or communication among them. The lack of networking and information sharing among the manufacturers is one of the greatest constraints to diffusion of technological developments in the sector. Hence projects aimed at promoting knowledge sharing among the manufacturers and users of biomass briquettes will be very useful for the sector".

(GtripleC 2010; Carmody et al. 2007). Providing economic incentives for the private sector are an important measure to improve investment conditions and encourage its participations. Therefore, clean energy and carbon finance vehicles may be also effective to introduce technologies at the advanced stage. For example, the economic policy instruments such as CDM may take an instrumental role. If they are designed well, the schemes under discussion for the post-Kyoto regime such as the bilateral carbon crediting mechanism and the sectoral or program-based crediting mechanism can be also a good policy candidate for technology diffusion. At the national level, an introduction of a feed-in-tariff program has received greater attentions among the developing countries, while other economic instruments such as subsidy, emissions trading, and renewable energy certificate scheme can be also recognized as possible policy options. The investment schemes such as co-investments and loans or risk guarantees may help to reduce risk associated with investment from the private sector (Suzuki 2012). In addition, such an arrangement for building a partnership between the private and the public (Public-Private Partnership: PPP) may leverage the interests of the private sector in developing

technologies that would not be attracted to clean energy technologies otherwise.

**international institutions**

208 Environmental Change and Sustainability

related issues.

that were identified in Section 3.1.

**3.2. Matching the barriers in technology diffusion with the functions of national and**

Section 2.3 illustrated technology-specific barriers among different technologies. Section 3.2 attempts to match those barriers with the functions of national and international institutions

The case studies on wind as well as on hybrid vehicles and LED indicated that difficulties associated with IPRs are major barriers in technology diffusions. Indeed, IPRs are complex issues and providing opportunities to learn about the issues can be an important institutional arrangement as the first step. Ockwell, D., J. Watson et al. (2009), on the case of wind in India, states that "there was a need to create awareness among the industry players who do not have deeper understanding of implications of IPR rules and regulations, including those in the context of WTO regime." Preparing patent pools for licensing inventions is often discussed as a necessary arrangement in diffusing clean energy technologies but it requires careful institu‐ tional design not to remove incentives for the private sector and discourage its innovational efforts. At the international level, the World Intellectual Property Organization (WIPO) can facilitate such venues for the private sector in the developing countries to learn about IPRs-

The case study on LED identified the size of the market as a major barrier. This case, together with the case on building energy efficiency, also pointed out high capital cost as a major barrier. In order to overcome these barriers, the roles of institutions in facilitating and supporting finance are important. On LED, Ockwell, D., J. Watson et al. (2007) states that "as government is already promoting PV integrated energy efficient lighting systems for rural lighting applications, incentives could be provided for LED based PV integrated systems." As for the case on biomass, low priority in finance is recognized as a major barrier. In this case, knowledge

The case studies on bio-energy, biomass, and building energy efficiency all emphasized that lack of the enabling environment is the key barrier in technology diffusion. The case study on bio-energy in India highlighted "poor understanding of managing moisture content, lack of knowledge, uncertainty and distrust in the source of information and inadequate training, capacity-building and user education program" as a major hindrance. The case study on biomass in Thailand pointed out a lack of formal training and capacity building among construction workers, lack of awareness of the potential and importance of energy efficiency measures, lack of financing, and lack of qualified personnel. In order to overcome these barriers associated with a lack of the enabling environment, the case study on bio-energy in India suggested promoting collaboration between industry and academia, for field demonstrations, and promoting feedback and communication between developers and implementers (Ravin‐ dranath and Rao 2011). It stated that "the development of training schemes could provide a route to alleviating this skill shortage. It is important to ensure that all staff involved in training and development have been adequately trained themselves. Use of R&D institutions in training could be beneficial" (Ravindranath and Rao 2011).

As for the technologies at the early stage of technological development, the cooperation in R&D between the pubic and the private sectors as well as the cooperation between local and overseas actors are inevitable in order to overcome technological barriers. As emphasized earlier, the strong initiatives from the public side are needed since it is difficult to expect the private sector to play an important role if the business model is not yet visible. The case study on CCS indicated that "given current policy and market conditions, carbon markets appear marginal or inadequate for CCS applications such as industrial-scale demonstration plants to be economically viable without (potentially significant) additional support" (Dalhammar, C. et al. 2009). The case study on IGCC concluded that "one possible approach to overcoming the risks of high capital costs is for government to share the funding of demonstration activities with industry… Financial support from developed to developing countries would be needed to provide for incremental costs and technology transfer fees, through international financing mechanism" (Ockwell, D., J. Watson et al. 2007; Ockwell, D., J. Watson et al. 2009).

Table 4 illustrates both identified barriers and roles of institutions to overcome the identified barriers

