This paper looks at the role of firms in the transformation of fossil
fuel based energy systems towards cleaner and greener energy systems.
Firms are playing an important role in determining the speed and
direction of technical change towards such energy systems. But systemic
constraints and negative externalities tend to make such transformations
constraint and difficult. To be able to understand how firms overcome
these systemic constraints and bring about positive externalities it
would be important to observe the strategic role played by firms. Firms
are removing technological and economic constraints by engaging in
strategic alliances with other firms and research organizations. Both
small and large firms have positioned themselves strategically in the
green energy market either through basic innovations or through
innovations brought about by joint technological partnerships.
JEL: A10, M21, 039
Keywords: Firm Strategy, Sustainable Energy, Renewable Energy, System Transition
UNU-MERIT Working Papers ISSN 1871-9872