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

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

The topic of the article does not follow the scope of the journal.

The article's title is inconsistent with the abstract and the main body document.

The relationship between policy and R&D with the diffusion of renewable energies is unclear. The authors must clearly explain the concept of diffusion.

The Introduction section is very confusing and does not make the problem clear.

The English language writing is very confusing, for example, Line 45-49.

Line 11 refers to a model; however, no model is presented in the main body of the manuscript.

The design of the figures and tables is of deficient quality.

The manuscript does not follow the rules of the journal template, mainly the reference section.

Subsection 3.3 Model validation does not show any validation in this regard.

Lines 21-23 mention that there is a broad discussion; however, there is no subsection or specific content in this regard.

Regarding figures 2-4, no mathematical representation is presented that could explain the behavior of the results of said figures for each scenario proposed.

Limitations and implications of the research are not presented. The above is directly applicable to the hypothetical model, which is not shown in the article.

 

In Table 2, the bass parameter for Colombia is not presented.

Comments on the Quality of English Language

The English language writing is very confusing, for example, Line 45-49.

The structure of the ideas and their writing should be improved, especially in the Introduction section.

Author Response

Comments to the Author

Thank you

The topic of the article does not follow the scope of the journal.

The article's title is inconsistent with the abstract and the main body document.

Thank you we hope that in the current state of the article, this meet the scoop of the journal and title, and main body are consistent.

Comment 1

The relationship between policy and R&D with the diffusion of renewable energies is unclear. The authors must clearly explain the concept of diffusion.

Thank you, we have expanded the hypothesis dynamics explanations as is show below.

According to the dynamic hypothesis Fig. 1, R&D investments in renewable patents boost an organization's capacity for innovation and propel the development of renewable energy technology. Increased innovation leads to more economical and efficient renewable energy solutions being developed, which in turn generates innovation revenues and, eventually, lowers R&D costs as technologies mature and become more commercially viable (see feedback loop B1).

Furthermore, a rise in renewable energy-friendly regulations, such tax breaks, government grants, and renewable energy standards, makes renewables more appealing to consumers, companies, and investors. In addition to lowering the financial risks involved, these regulations increase the competitiveness of renewable energy projects relative to conventional energy sources. Because of its greater appeal, there is a rise in installed renewable capacity, which raises public support for renewable energy sources. Increased public acceptability fuels additional legislative support and more advantageous regulatory frameworks for renewables, which in turn forms a reinforcing circle (see feedback loop R1).

Here, the idea of absorption capacity is crucial. The system's absorption capacity includes its ability to incorporate and use renewable energy technology efficiently. High absorption capacity makes guarantee that developments in R&D and policy-friendly measures result in real growth in the use of renewable energy. This entails establishing the market conditions, infrastructure, and technical know-how required to facilitate the broad use of renewable energy sources.

Increases in installed renewable capacity have a number of positive consequences. Lower capital expenditures (CAPEX) and costs for renewable energy are the result of the learning curve effects, a phenomenon that describes how more experience with a technology leads to cost reductions. Because of the lower prices, renewable energy projects are now more financially viable, which attracts additional investment and raises installed capacity even further (see feedback loop R2). The more renewable energy sources are built, the more affordable and effective they become, which accelerates the adoption of these sources. This positive feedback loop perpetuates itself.

Furthermore, self-generated energy production rises with increased renewable capacity. By doing this, the grid's overall energy consumption is decreased, which causes the energy demand curve to move to the left. The generating charge, which is based on how supply and demand for energy interact, decreases when grid energy use decreases. Customers' energy costs may be stabilized or even decreased as a result, increasing the allure of renewable energy.

The dynamic hypothesis, in summary, shows how R&D investments, encouraging laws, and the ensuing developments in renewable technology provide a feedback loop that propels the expansion of renewable energy capacity. This process relies heavily on the idea of absorption capacity, which establishes how well these innovations and regulations translate into real increases in installed renewable capacity and lower energy costs. The shift to a sustainable and renewable energy future can be sped up by improving absorption capacity across technological, economic, policy, market, and social dimensions.

Comment 2

The Introduction section is very confusing and does not make the problem clear.

Thank you we have in the introduction the following paragraphs

A substantial amount of research and development (R&D) funding is necessary to tackle the complex problem of electricity markets making the switch to renewable energy. Even while earlier research has yielded insightful information, a number of important issues remain unanswered. In particular, a deeper comprehension of the R&D expenditures necessary for the effective integration of renewable energy in diverse contexts is crucial. Gaining this understanding is essential to creating strategies that effectively increase the uptake of renewable technologies.

For example, while analyzing three separate case studies, a number of concerns surface: Is it possible to extrapolate these case studies' experiences to other situations? How will research and development be funded and organized to meet the particular difficulties presented by each scenario? What specific responsibilities do research and development initiatives and policies related to renewable energy play in promoting the wide-scale adoption of renewable technologies? What legal obligations also need to be fulfilled in order to guarantee a seamless transition?

The main objective of this research is to use a model-based assessment approach to understand the effect of R&D investments, current policies, and renewable energy diffusion in achieving a smoother transition, given the aforementioned and the plethora of potential solutions to ease the transition to higher shares of renewable energy in electricity markets. This study considers a variety of important variables, such as the overall quantity of patent applications, the installed capacity of wind and solar power, the different policies designed to meet targets for renewable energy, the price of carbon dioxide, and the correlation between installed capacity and patent numbers.

This study looks at these variables in an attempt to identify the qualities that are essential for R&D investments to be successful and for the spread of renewable energy technology. The idea of absorptive capacity, which describes a nation's or organization's capability to absorb and use new knowledge, is one topic of particular interest. This study addresses a gap in the literature by examining the effects of absorptive capacity and renewable energy policy on the returns on research and development investments.

In conclusion, the goal of this research is to present a thorough knowledge of the interactions that occur between regulatory frameworks, R&D investments, and the uptake of renewable energy. The ultimate goal of the research is to contribute to the larger objective of attaining a sustainable and effective transition to renewable energy in electricity markets by providing insightful analysis and recommendations for stakeholders and policymakers.

Comment 3

The English language writing is very confusing, for example, Line 45-49.

Thank you, for your comment

We have revised and edited the document in order to improve the English quality

Comment 4

Line 11 refers to a model; however, no model is presented in the main body of the manuscript.

Thank you, we have added in the Appendix A, the main equation of the article

Comment 5

The design of the figures and tables is of deficient quality.

Thank you, we have changed tables and figures in order to improve the quality.

Comment 6

The manuscript does not follow the rules of the journal template, mainly the reference section.

Thank you, we have organized the reference section and the main body of the article in order to follow the journal template.

Comment 7

Subsection 3.3 Model validation does not show any validation in this regard.

Thank you we have added in validation section the following.

In Fig.2 comparison of behavior of Solar real installed capacity in Brazil and Model installed capacity are shown, and it is possible to see that model follows the same trend that real installed capacity.

Fig. 2 Solar installed capacity in Brazil Real vs Model simulation

 

Comment 8

Lines 21-23 mention that there is a broad discussion; however, there is no subsection or specific content in this regard.

Thank you, we have added the section Policy implication in which discussion is included.

Comment 9

Regarding figures 2-4, no mathematical representation is presented that could explain the behavior of the results of said figures for each scenario proposed.

Thank you, mathematical explanation in describe below

It is significant to notice that, with regard to figures 2-4, no mathematical representation is currently offered to explain the behavior of the results for each scenario that is suggested. However, the impact of price on the adoption of renewable energy is an underlying element driving the growth seen in these data. Renewable technologies are becoming more appealing and are being adopted at higher rates as their costs come down.

The concepts of the Bass model, which is frequently used to explain the diffusion of new technologies, can be utilized to further clarify this growth. The adoption of new technologies, according to the Bass model, goes through an S-shaped curve that starts slowly, grows quickly, and then levels out when the market becomes saturated.

The Bass model contributes to the understanding of the rise in installed capacity up until the saturation period in the context of renewable energy. Initially motivated by innovation and the wish to capitalize on new developments, early adopters invest in renewable technologies. Adoption of these technologies increases quickly as more people and organizations copy this behavior as they show these technologies to be practical and affordable. This stage lasts until the market reaches saturation, at which point growth rates start to slow down and the majority of potential users have already included renewable energy into their systems.

As a result, the Bass model's description of diffusion dynamics and the declining costs of renewable technologies are responsible for the trend seen in figures 2-4. The numbers represent the early phases of adoption.

Comment 10

Limitations and implications of the research are not presented. The above is directly applicable to the hypothetical model, which is not shown in the article.

Thank you we added an appendix with the main equations of the model.

In addition, we have the limitations of the model at conclusions section.

It is important to remember that the model has some restrictions. First of all, it ignores the function of energy storage batteries, including how they are installed and how they could affect the effectiveness and integration of renewable energy sources. The absence of energy storage from the model marks a major gap in its accuracy and applicability, as energy storage is essential to regulating the intermittent nature of renewable energy sources like solar and wind.

Furthermore, this model does not investigate the possibilities of other prospective renewable technologies; instead, its scope is exclusively focused on onshore renewable energy sources. Subsequent research endeavors may involve broadening the scope of the analysis to encompass offshore wind, geothermal energy, or biomass. These energy sources all provide different advantages and difficulties. For example, compared to onshore wind, offshore wind has far more potential because of its higher and more steady wind speeds. Though it has limited use in certain areas, geothermal energy provides a steady and dependable power source. with addition to being a green energy source, biomass can aid with trash management.

In conclusion, even though the current model offers insightful information, its shortcomings emphasize the necessity for additional study that considers a wider variety of renewable energy sources and incorporates crucial elements like energy storage systems. This broader focus would improve our comprehension of the ways in which we may achieve a more sustainable and resilient energy system.

 

Comment 10

 

In Table 2, the bass parameter for Colombia is not presented.

"Thank you. In the Bass model, the parameters p and q are the same for Colombia, Brazil, and Chile. We have edited the table to make this clearer.

Reviewer 2 Report

Comments and Suggestions for Authors

Dear Authors

The article contains new solutions and considers modern approaches that are the subject of debate in the professional literature. The authors have clearly formulated the purpose of the research, which requires proof, and the apparatus used in the article makes it possible to achieve the goal. The article contains a clear logical scheme to prove the points put forward by the author.

The manuscript will be of better quality if the authors make some additions:

I recommend to write the Introduction more briefly, describe the problem and lack of knowledge, then immediately should be formulated the Goal and Objectives of the research. In your manuscript the Objective is on line 183, it should be stated earlier

Part of your introduction could be moved to a literature review where you describe who has previously addressed similar problems and by what methods. This will be a more proper structure that follows the template

Note that the validation of the results is not presented enough or make it more explicit.

It would be good if the authors showed tables with calculations in the Appendices, at least partially.

Best wishes

Author Response

Dear Authors

 

The article contains new solutions and considers modern approaches that are the subject of debate in the professional literature. The authors have clearly formulated the purpose of the research, which requires proof, and the apparatus used in the article makes it possible to achieve the goal. The article contains a clear logical scheme to prove the points put forward by the author.

The manuscript will be of better quality if the authors make some additions:

Comment 1

I recommend to write the Introduction more briefly, describe the problem and lack of knowledge, then immediately should be formulated the Goal and Objectives of the research. In your manuscript the Objective is on line 183, it should be stated earlier:

Thank you we have moved the main objective earlier.

Comment 2

Part of your introduction could be moved to a literature review where you describe who has previously addressed similar problems and by what methods. This will be a more proper structure that follows the template:

Thank you, we have moved the following paragraphs to literature review section:

Innovation increases productivity and economic growth while also encouraging the transition to low-carbon energy. It improves the productivity of capital and/or labor and accelerates technical innovation, allowing for increased economic output with the same level of input [14].

Furthermore, through innovations, energy transition influences market efficiency. It has an impact on market-wide flaw chains. Innovation in renewable energy, backed by policy implementation, has an impact on economies, taxes, subsidies, and regulations. Government policies often promote the use of clean energy in industry, leading to improved market efficiency [15].

Some researchers have observed the absence of an integrative model-based framework—one that is generic, modular, adaptable, and transportable—to support the process of system analysis, notably using the System Dynamics (SD) technique. [16]. For example, an SD model was built to investigate the replacement of traditional household appliances with more efficient ones and to examine energy efficiency measures; however, this tool was not generalizable. For instance,[17] built an SD model to evaluate the rate and impact of solar PV dissemination in the United Kingdom, Brazil, and Colombia (however this tool was not generalizable).

Comment 3

Note that the validation of the results is not presented enough or make it more explicit.

Thank you we have added two figures in order to validated

Comment 4

It would be good if the authors showed tables with calculations in the Appendices, at least partially.

Thank you we have added the section Appendix A Input data and model description.

In Fig.2 comparison of behavior of Solar real installed capacity in Brazil and Model installed capacity are shown, and it is possible to see that model follows the same trend that real installed capacity.

Fig. 2 Solar installed capacity in Brazil Real vs Model simulation

Installed capacity for solar and wind are modelled using a bass model and a logit model choose, using the following equations:

Regarding patents the equations depends on patent price, renewable goal policy than increase I&D investment, equations are presented following:

Author Response File: Author Response.pdf

Reviewer 3 Report

Comments and Suggestions for Authors

Thank you for this giving me opportunity to review this study on the role of renewable energy policy and R&D in renewables 2
diffusion, which is imperative and applicable in the future. However, I find major issues and can be improved in future.

- The abstract, authors need to clear aim and few numbers can be added in main results. a policy-related sentence can also be added.

- Study motivation and contribution can be enhanced in technological and social perspectives.

- Lot of renewable and electricity literature is available at national and international levels, which can be enhanced using the studies, such as https://doi.org/10.1016/j.jclepro.2022.132074; further can be followed as well. Better to add a literature review section.

-Discuss the reason of choosing specific countries.

-Discussion can be further enhanced with supporting results.

-What is main logic behind scenario analysis until 2040.

-Add a policy section and discuss the policies based on empirical findings. Provided implications are too general which have been discussed in the literature.

Comments on the Quality of English Language

minor mistakes have been seen such as table heading, font etc.

Author Response

Thank you for this giving me opportunity to review this study on the role of renewable energy policy and R&D in renewables 2 diffusion, which is imperative and applicable in the future. However, I find major issues and can be improved in future.

 

Comments:

Comment 1

- The abstract, authors need to clear aim and few numbers can be added in main results. a policy-related sentence can also be added.

Thank you we have the following in the abstract

This paper investigates the dynamic interplay between research and development investments and policy frameworks in shaping the renewable energy landscapes of Brazil, Chile and Colombia up to 2040. Employing a simulation-based model, the paper presents four scenarios to understand how different levels of R&D investment and the presence or absence of supportive renewable energy policies influence the diffusion of renewable technologies, particularly solar and wind energy. The scenarios are constructed to reflect varying degrees of research and development levels and policy-driven growth prospects, ranging from an optimistic scenario with high R&D funding and strong policy support to a worst-case scenario with minimal R&D efforts and weak policy frameworks. The findings highlight the critical role of robust governmental support and strategic R&D investments in driving the adoption of renewable technologies and enhancing green patent filings. Conversely, scenarios depicting limited policy support and R&D funding show significantly restrained growth, underscoring the challenges of economic constraints and unfavorable market conditions, results show that renewables policies can lead to renewable increase between 100% to 200%. This study contributes to the broader discussion on sustainable energy policy, providing insights that could help policymakers and stakeholders formulate strategies that effectively harness the potential of renewable energy in the region.

 

Comment 2

- Study motivation and contribution can be enhanced in technological and social perspectives.

Thank you we have in the introduction the following paragraph in order to enhanced study motivation:

A substantial amount of research and development (R&D) funding is necessary to tackle the complex problem of electricity markets making the switch to renewable energy. Even while earlier research has yielded insightful information, a number of important issues remain unanswered. In particular, a deeper comprehension of the R&D expenditures necessary for the effective integration of renewable energy in diverse contexts is crucial. Gaining this understanding is essential to creating strategies that effectively increase the uptake of renewable technologies.

For example, while analyzing three separate case studies, a number of concerns surface: Is it possible to extrapolate these case studies' experiences to other situations? How will research and development be funded and organized to meet the particular difficulties presented by each scenario? What specific responsibilities do research and development initiatives and policies related to renewable energy play in promoting the wide-scale adoption of renewable technologies? What legal obligations also need to be fulfilled in order to guarantee a seamless transition?

The main objective of this research is to use a model-based assessment approach to understand the effect of R&D investments, current policies, and renewable energy diffusion in achieving a smoother transition, given the aforementioned and the plethora of potential solutions to ease the transition to higher shares of renewable energy in electricity markets. This study considers a variety of important variables, such as the overall quantity of patent applications, the installed capacity of wind and solar power, the different policies designed to meet targets for renewable energy, the price of carbon dioxide, and the correlation between installed capacity and patent numbers.

This study looks at these variables in an attempt to identify the qualities that are essential for R&D investments to be successful and for the spread of renewable energy technology. The idea of absorptive capacity, which describes a nation's or organization's capability to absorb and use new knowledge, is one topic of particular interest. This study addresses a gap in the literature by examining the effects of absorptive capacity and renewable energy policy on the returns on research and development investments.

In conclusion, the goal of this research is to present a thorough knowledge of the interactions that occur between regulatory frameworks, R&D investments, and the uptake of renewable energy. The ultimate goal of the research is to contribute to the larger objective of attaining a sustainable and effective transition to renewable energy in electricity markets by providing insightful analysis and recommendations for stakeholders and policymakers.

 

Comment 3

- Lot of renewable and electricity literature is available at national and international levels, which can be enhanced using the studies, such as https://doi.org/10.1016/j.jclepro.2022.132074; further can be followed as well. Better to add a literature review section.

Thank you, we have added the following two paragraphs in the literature review

 

Karmellos et al. [16] studies main factors of carbon dioxide (CO2) emissions from electricity generation in the EU-27 and the UK from 2000 to 2018 in this paper is concluded that effectiveness of European energy policies in reducing CO2 emissions from electricity generation. The importance of continued investments in renewable energy and energy efficiency to maintain and enhance decoupling of economic growth from carbon emissions, thus supporting a sustainable transition to a low-carbon economy. Regarding barriers to incorporate renewables into market [17] in this paper economic, environmental, infrastructural, technical, technological and policy barriers were studied, in this research is concluded that the need for coordinated efforts, technological innovation, and supportive policies to promote green energy production and achieve sustainability goals in the EU.

 

[23] examines the impact of R&D investments in Pakistan, existing policies, and renewable energy diffusion on this transition, these research places of interest the role of technological innovation through patent analysis, emphasizing the importance of R&D investments in driving new technologies for renewable energy.

 

Comment 4

And we have added the following references

 

16. Karmellos, M.; Kosmadakis, V.; Dimas, P.; Tsakanikas, A.; Fylaktos, N.; Taliotis, C.; Zachariadis, T. A Decomposition and Decoupling Analysis of Carbon Dioxide Emissions from Electricity Generation: Evidence from the EU-27 and the UK. Energy 2021, 231, doi:10.1016/j.energy.2021.120861.
17. Wardal, W.J.; Mazur, K.; Barwicki, J.; Tseyko, M. Fundamental Barriers to Green Energy Production in Selected EU Countries. Energies (Basel) 2024, 17, 3664, doi:10.3390/en17153664.
18. Raza, M.Y.; Lin, B. Analysis of Pakistan’s Electricity Generation and CO2 Emissions: Based on Decomposition and Decoupling Approach. J Clean Prod 2022, 359, doi:10.1016/j.jclepro.2022.132074.

 

Comment 5

-Discuss the reason of choosing specific countries.

 

Thank you, we have added the following reasons

 

Chile has been a regional leader in the deployment and integration of renewable energy within its electricity market. This is as a result of its vast renewable resources and government policies, Chile has an important resource of solar and wind. To leverage these resources, the Chilean government has implemented a series of policies aimed at encouraging the development of renewable energy technologies and investments in R&D [37], Chile has abundant solar and wind resources, particularly in the Atacama Desert, which is one of the sunniest and driest places on earth, and the coastal regions, which are ideal for wind power generation [40], Chile’s success in integrating renewable energy serves as a model for other Latin American countries. Its experience demonstrates the potential for renewable energy to enhance energy security, reduce greenhouse gas emissions, and foster economic development [37]. The Brazilian electricity market is predominantly dominated by hydro and renewable sources. Brazil uses auction systems to contract new energy generation, which has been successful in attracting investments in wind and solar energy projects at competitive prices [41]. Brazil's regulatory framework is designed to diversify its energy sources and has made significant strides in integrating renewable energy into its national grid. With the country's vast potential for solar and wind energy still largely untapped, Brazil’s policies are likely to continue evolving to harness these resources more effectively [42], Brazil’s regulatory framework is designed to diversify its energy mix. The country has made significant strides in integrating wind and solar energy into its national grid, ensuring a balanced and resilient energy system [43]. Colombia's electricity is predominantly sourced from hydroelectric power [44]. To promote other renewable energy sources on both large and small scales, Colombia recently fully implemented Law 1715 [45]. The selection of Chile, Brazil, and Colombia highlights the diverse approaches and successes in integrating renewable energy within their respective electricity markets. Each country’s unique combination of natural resources, government policies, and strategic initiatives offers valuable insights and lessons for the broader Latin American region and beyond. These examples underscore the importance of tailored policy frameworks, competitive market mechanisms, and investment in R&D to drive the transition to a sustainable energy future.

Comment 6

-Discussion can be further enhanced with supporting results.

-What is main logic behind scenario analysis until 2040.

Thank you we have added the following paragraph in model assumptions

 

• The simulation time horizon of 15 years, from 2024 to 2040, with a monthly time step, is designed to capture the main logic behind scenario analysis, which includes understanding long-term market trends, assessing the impact of different policies and technologies, and making informed decisions. A 15-year horizon is sufficient to observe significant shifts in market dynamics, including the adoption rates of new technologies, changes in energy consumption patterns, and the overall evolution of the electricity market. This period allows analysts to identify and understand long-term trends rather than short-term fluctuations.

Comment 7

-Add a policy section and discuss the policies based on empirical findings. Provided implications are too general which have been discussed in the literature.

 

Thank you we have added the section Policy implications

Policy implications

The following section provides policy recommendations and suggested actions for decision-makers based on the model's findings. To successfully implement financial incentives, improve infrastructure, and enact legislative changes, a holistic approach is essential.

 

In order to promote the uptake of sustainable energy solutions, a comprehensive plan with detailed instructions is essential. This comprises:

• Easy Access to Low-Interest Loans and Grants: Make it more accessible for utilities to access affordable financing options for solar and wind energy systems. This will help reduce financial barriers and encourage more widespread use.
• Provide tax benefits for businesses installing solar and wind technologies and streamline access to affordable loans or grants for acquiring renewables energies.
• Business Incentives: By providing tax exemptions and financial incentives, businesses can be motivated to invest in renewable energy and electric vehicle infrastructure. Embracing sustainability not only benefits the environment but also offers financial advantages to organizations. For instance, organizations can take advantage of accelerated depreciation on solar and electric vehicle investments, leading to potential cost savings.
• R&D investments policy: R&D for renewables offers substantial long-term advantages. By focusing on R&D, we can achieve innovative solutions and improvements in efficiency, ultimately lowering the production and implementation costs of renewable energy systems. This approach not only makes renewable energy more accessible and affordable but also encourages widespread adoption. As more capacity is installed and economies of scale are realized over time, the overall cost of renewable energy continues to decrease, creating a positive feedback loop that further accelerates the transition to sustainable energy sources.
• Renewables target: Let's set ambitious targets to increase the use of renewable energy in the electrical industry, focusing particularly on solar and other sustainable sources. By defining realistic goals, we can encourage investment in renewable energy projects and establish a clear path toward adopting a cleaner energy mix. We can also put in place policies like feed-in tariffs, renewable energy certificates, and mandates that require utility companies to obtain a specific percentage of their energy from renewable sources to help us achieve these targets.
• Emissions Standards: To encourage the switch to greener alternatives like Solar and wind, more strict emissions regulations should be applied to coal and gas technologies. This can involve introducing penalties for non-compliance, encouraging companies to invest in R&D and increase renewables installed capacity.

If Colombia adopts a comprehensive and cohesive policy approach, it can make the transition to sustainable and renewable energy sources effective. With this strategy, the nation will be able to capitalize on the synergies between renewable energy sources, which will have significant positive effects on the environment and the economy. Colombia may reduce its reliance on non-renewable energy sources and take major steps toward developing a more sustainable and environmentally friendly energy landscape by incorporating these technologies

Reviewer 4 Report

Comments and Suggestions for Authors

(1)   How does the paper's simulation-based model address the varying levels of R&D investment and policy support in shaping the renewable energy landscape in Brazil, Chile, and Colombia?

(2)   What are the main scenarios presented in the study, and how do they reflect different degrees of R&D investment and policy-driven growth prospects?

(3)   How does the study quantify the impact of robust governmental support and strategic R&D investments on the adoption of renewable technologies and green patent filings?

(4)   What are the key challenges and economic constraints highlighted by the study in scenarios with limited policy support and R&D funding?

(5)   How does the System Dynamics (SD) approach used in the research contribute to understanding the dynamics of R&D investments and renewable regulations in boosting renewable energy market share?

(6)   What specific policy recommendations does the study provide to enhance renewable energy diffusion and innovation in the context of the countries analyzed?

(7)    How does the study validate the relationship between R&D investments, governmental policies, and the growth of renewable energy capacity, and what future research directions are suggested?

Author Response

Comment 1

(1)   How does the paper's simulation-based model address the varying levels of R&D investment and policy support in shaping the renewable energy landscape in Brazil, Chile, and Colombia?

Thank you we have added more detail in scenarios as is shown in comment 2.

Comment 2

(2)   What are the main scenarios presented in the study, and how do they reflect different degrees of R&D investment and policy-driven growth prospects?

Thank you we have added the following paragraphs in simulation scenarios

Table 3 lists the several scenarios that have been implemented in the simulation model. These scenarios capture plausible long-term sustainability impacts under various policy and economic settings, as well as realistic transitions. These hypothetical situations are intended to investigate the ways in which different R&D spending levels and renewable energy regulations may impact the advancement and uptake of renewable energy technology.

Scenario 1: Best-Case Scenario (BCS):

The model makes a large investment in R&D in Scenario 1, which is referred to as the Best-Case Scenario (BCS). Because of this significant investment, the cost of renewable energy technology decreases, increasing their competitiveness with conventional energy sources. Persistent and strong renewable energy policies that aim to increase the installed capacity of renewables further support the situation. These regulations could include significant financial aid, tax breaks, and requirements for the use of renewable energy. A suitable climate for the renewable energy sector's rapid expansion is created by supporting legislation and strong R&D investment, which might have significant positive effects on the environment and the economy. This scenario exemplifies the perfect course for accelerating the shift to a sustainable energy future by combining legislative assistance with technological breakthroughs.

Scenario 2: High R&D, Low Policy Support

Scenario 2 calls for a reduction in renewable energy goals and investment support, but it also calls for a sizable investment in R&D that lowers technological costs. The lack of robust policies promoting renewable energy implies that there is less motivation for the widespread adoption of these technologies, even in spite of the technological breakthroughs brought about by substantial R&D expenditure. The market expansion for renewables may be hampered in the absence of regulations requiring a specific proportion of energy to come from renewable sources, feed-in tariffs, and renewable energy certificates. This hypothetical situation demonstrates how important policies are in enhancing technology breakthroughs. The growth of renewable energy can be severely hampered by the lack of supportive policies, even in cases where the finest technology are available at reduced costs.

Scenario 3: Worst-Case Scenario (WCS):

The Worst-Case Scenario (WCS), or Scenario 3, is typified by poor R&D investment and low incentives for renewable energy. There aren't any major goals or initiatives in this scenario to expand the renewable energy industry. The absence of research and development funding prevents renewable energy sources from achieving the required cost savings and efficiency gains to rival conventional energy sources. Furthermore, there is no incentive for consumers and businesses to switch to renewable energy in the absence of supportive regulations. In this scenario, renewable energy adoption is neither driven by policy or technology, which means that there is minimal progress towards sustainability goals and a persistent reliance on non-renewable energy sources.

Scenario 4: Low R&D, High Policy Support:

In Scenario 4, the industry is still supported by legislation pertaining to renewable energy, but research and development expenditures are still minimal. In this case, laws requiring the use of renewable energy sources, along with tax breaks and other regulations, promote the uptake of current renewable technology. However, there are less technological advancements and cost savings due to the low level of R&D expenditure. Because of this, there is little chance of major technological advancements and considerable cost reductions, even though the industry benefits from extensive regulatory support. This case emphasizes how crucial it is to strike a balance between funding for R&D and policy assistance. Policies may encourage early adoption, but the renewable energy sector's long-term growth and competitiveness may be limited in the absence of ongoing technological advancement.

In addition, below table 3, we have added the following paragraph

These scenarios offer a thorough understanding of the potential effects on the renewable energy sector of various combinations of policy assistance and R&D investment. Policymakers and other interested parties can create strategies that successfully encourage the development of renewable energy technology by studying these scenarios in order to have a better understanding of the possible implications of their decisions.

Comment 3

(3)   How does the study quantify the impact of robust governmental support and strategic R&D investments on the adoption of renewable technologies and green patent filings?

Thank you we have expanded explanation of dynamics hypothesis as is show in following paragraph.

According to the dynamic hypothesis Fig. 1, R&D investments in renewable patents boost an organization's capacity for innovation and propel the development of renewable energy technology. Increased innovation leads to more economical and efficient renewable energy solutions being developed, which in turn generates innovation revenues and, eventually, lowers R&D costs as technologies mature and become more commercially viable (see feedback loop B1).

Furthermore, a rise in renewable energy-friendly regulations, such tax breaks, government grants, and renewable energy standards, makes renewables more appealing to consumers, companies, and investors. In addition to lowering the financial risks involved, these regulations increase the competitiveness of renewable energy projects relative to conventional energy sources. Because of its greater appeal, there is a rise in installed renewable capacity, which raises public support for renewable energy sources. Increased public acceptability fuels additional legislative support and more advantageous regulatory frameworks for renewables, which in turn forms a reinforcing circle (see feedback loop R1).

Here, the idea of absorption capacity is crucial. The system's absorption capacity includes its ability to incorporate and use renewable energy technology efficiently. High absorption capacity makes guarantee that developments in R&D and policy-friendly measures result in real growth in the use of renewable energy. This entails establishing the market conditions, infrastructure, and technical know-how required to facilitate the broad use of renewable energy sources.

Increases in installed renewable capacity have a number of positive consequences. Lower capital expenditures (CAPEX) and costs for renewable energy are the result of the learning curve effects, a phenomenon that describes how more experience with a technology leads to cost reductions. Because of the lower prices, renewable energy projects are now more financially viable, which attracts additional investment and raises installed capacity even further (see feedback loop R2). The more renewable energy sources are built, the more affordable and effective they become, which accelerates the adoption of these sources. This positive feedback loop perpetuates itself.

Furthermore, self-generated energy production rises with increased renewable capacity. By doing this, the grid's overall energy consumption is decreased, which causes the energy demand curve to move to the left. The generating charge, which is based on how supply and demand for energy interact, decreases when grid energy use decreases. Customers' energy costs may be stabilized or even decreased as a result, increasing the allure of renewable energy.

The dynamic hypothesis, in summary, shows how R&D investments, encouraging laws, and the ensuing developments in renewable technology provide a feedback loop that propels the expansion of renewable energy capacity. This process relies heavily on the idea of absorption capacity, which establishes how well these innovations and regulations translate into real increases in installed renewable capacity and lower energy costs. The shift to a sustainable and renewable energy future can be sped up by improving absorption capacity across technological, economic, policy, market, and social dimensions.

Comment 4

(4)   What are the key challenges and economic constraints highlighted by the study in scenarios with limited policy support and R&D funding?

Thank you we have added in in policy implications paragraphs the following:

The study identifies a number of significant obstacles and financial limitations in situations with little financing for R&D and governmental support:

• Slow Technological Advancements: Innovation in technology and advances in renewables technologies are hampered by a lack of financing for R&D. Renewables find them challenging to compete with conventional energy sources since fewer breakthroughs that could result in cost savings and efficiency gains would occur from a lack of ongoing investment in research and development.
• Inadequate Policy Incentives: The lack of robust policy support, such as tax breaks, mandates for renewable energy, and subsidies, makes it difficult to encourage the use of renewable energy. Policies, which lower financial obstacles and offer economic incentives, are essential in fostering an environment that is friendly to renewable energy sources.
• Economic Constraints: It might be difficult to get the required investments in renewable energy projects due to factors like restricted finance availability and conflicting financial priorities. This could lead to a lack of funding for infrastructure development and large-scale deployment, which would further impede the expansion of the renewable energy industry.
• Obstacle to Green Patents: The study observes a slight rise in green patents in situations where R&D funding and policy assistance are scarce. This suggests that the quantity of new and better technologies that reach the market, which is essential for long-term sustainability and competitiveness, is limited due to stalled innovation in renewable technology.

 

Comment 5

(5)   How does the System Dynamics (SD) approach used in the research contribute to understanding the dynamics of R&D investments and renewable regulations in boosting renewable energy market share?

Thank you, we have added in section 3 followings paragraphs:

SD technique offers a strong framework for simulating and evaluating complex systems over time, it greatly aids in our understanding of the dynamics of R&D investments and renewable legislation in increasing the market share of renewable energy. This is a more detailed description of how it contributes to this comprehension:

• Creating Detailed Models to Capture Complex Interactions: SD enables the creation of complicated models that depict the complex interrelationships between different variables, including R&D expenditures, legislative measures, market reactions, technology breakthroughs, and environmental effects. The feedback loops, time delays, and non-linear connections typical of the renewable energy industry can be included in these models [37].
• Simulating Policy Scenarios: Researchers can use SD to develop and test various policy scenarios to determine how shifts in R&D funding, tax credits, subsidies, or mandates from regulations impact the share of renewable energy in the market. This lessens the possibility of unforeseen repercussions by helping to forecast the results of policy interventions before they are put into action [38].
• Recognizing Positive and Negative Feedback Loops: SD draws attention to feedback loops that can either increase or decrease the impact of R&D expenditures and laws. For example, more R&D may result in technological innovations that lower costs and boost efficiency, which may encourage more people to use renewable energy technology. Accelerating the switch to renewable energy may depend on this positive feedback loop [16].
• Developing Adaptive Strategies: Based on real-time data and shifting circumstances, adaptive strategies that are developed can be informed by the insights obtained by SD models. These models allow policymakers to dynamically modify policies in response to changes in the market and advancements in technology [39].

Comment 6

(6)   What specific policy recommendations does the study provide to enhance renewable energy diffusion and innovation in the context of the countries analyzed?

Thank you we have added the section policy implications

Policy implications

The following section provides policy recommendations and suggested actions for decision-makers based on the model's findings. To successfully implement financial incentives, improve infrastructure, and enact legislative changes, a holistic approach is essential.

 

In order to promote the uptake of sustainable energy solutions, a comprehensive plan with detailed instructions is essential. This comprises:

• Easy Access to Low-Interest Loans and Grants: Make it more accessible for utilities to access affordable financing options for solar and wind energy systems. This will help reduce financial barriers and encourage more widespread use.
• Provide tax benefits for businesses installing solar and wind technologies and streamline access to affordable loans or grants for acquiring renewables energies.
• Business Incentives: By providing tax exemptions and financial incentives, businesses can be motivated to invest in renewable energy and electric vehicle infrastructure. Embracing sustainability not only benefits the environment but also offers financial advantages to organizations. For instance, organizations can take advantage of accelerated depreciation on solar and electric vehicle investments, leading to potential cost savings.
• R&D investments policy: R&D for renewables offers substantial long-term advantages. By focusing on R&D, we can achieve innovative solutions and improvements in efficiency, ultimately lowering the production and implementation costs of renewable energy systems. This approach not only makes renewable energy more accessible and affordable but also encourages widespread adoption. As more capacity is installed and economies of scale are realized over time, the overall cost of renewable energy continues to decrease, creating a positive feedback loop that further accelerates the transition to sustainable energy sources.
• Renewables target: Let's set ambitious targets to increase the use of renewable energy in the electrical industry, focusing particularly on solar and other sustainable sources. By defining realistic goals, we can encourage investment in renewable energy projects and establish a clear path toward adopting a cleaner energy mix. We can also put in place policies like feed-in tariffs, renewable energy certificates, and mandates that require utility companies to obtain a specific percentage of their energy from renewable sources to help us achieve these targets.
• Emissions Standards: To encourage the switch to greener alternatives like Solar and wind, more strict emissions regulations should be applied to coal and gas technologies. This can involve introducing penalties for non-compliance, encouraging companies to invest in R&D and increase renewables installed capacity.

If Colombia adopts a comprehensive and cohesive policy approach, it can make the transition to sustainable and renewable energy sources effective. With this strategy, the nation will be able to capitalize on the synergies between renewable energy sources, which will have significant positive effects on the environment and the economy. Colombia may reduce its reliance on non-renewable energy sources and take major steps toward developing a more sustainable and environmentally friendly energy landscape by incorporating these technologies.

 

Comment 7

(7)    How does the study validate the relationship between R&D investments, governmental policies, and the growth of renewable energy capacity, and what future research directions are suggested?

Thank you we have added the following conclusions:

The study shows that spending on R&D lowers costs and increases installed capacity of renewable energy technology. The study demonstrates that strong government policies, such tax breaks and auctions, are also necessary for the expansion of renewable energy capacity. R&D investments are not the only factor that contribute to this increase. The way these variables interact is essential to the growth of renewable energy.

The huge differences between the various scenarios point to the necessity of significant R&D spending and strong legislative backing in order to achieve rapid increases in renewable energy capacity and green patent registrations. In one hand, the scenario with the highest growth across all indicators, Scenario 1, highlights the potential impact of a supportive environment marked by significant investments, strong government support, and advanced technical progress. On the other hand, scenario 2's low growth, which is a result of significant R&D investment and little regulatory support, emphasizes the significance of advantageous market conditions and all-encompassing policies. The necessity for consistent and focused initiatives to remove obstacles and promote growth in renewable technologies is highlighted by the possibility of stagnation in both installed capacity and technological advancements in the absence of sufficient support and suitable conditions.

The research recommends that additional research be done in the future to examine how battery storage and technological developments affect the way the electricity market functions. This is important because battery storage technology helps to mitigate the intermittent nature of renewable energy sources like wind and solar power. Battery storage helps stabilize the grid, improve energy security, and guarantee a more consistent supply of power by storing surplus energy generated during high generation periods and releasing it during low generating periods. Investigating the operational and financial effects of incorporating large-scale battery storage into the energy grid may offer important new perspectives on how to maximize grid efficiency, cut expenses, and improve renewable energy systems all around. The study also highlights the necessity of broadening the research's focus to encompass additional renewable energy sources, such as biomass, geothermal, and offshore wind.

Reengineering current projects and the entire power system would be necessary to incorporate these various renewable energy sources. This entails modernizing the architecture of the grid, establishing new guidelines and standards, and building integrated systems capable of handling the distinct properties and outputs of various renewable energy sources. Subsequent investigations ought to endeavor to tackle these obstacles by investigating inventive remedies and formulating sturdy structures that facilitate the smooth assimilation of a diverse range of sustainable energy sources into the current energy infrastructure.

Author Response File: Author Response.pdf

Round 2

Reviewer 1 Report

Comments and Suggestions for Authors

The authors attempt to respond to all review comments, however, they do not respond directly and the paper has not been significantly improved. e.g., comment 6, 4, among others.

Comments on the Quality of English Language

The authors attempt to respond to all review comments, however, they do not respond directly and the paper has not been significantly improved. e.g., comment 6, 4, among others.

Author Response

Thank you for your comments. We have carefully edited the references, reviewed the figures, and double-checked the manuscript to enhance its overall quality. Additionally, we've included a figure of the simulation model in the Appendix to provide a clearer understanding of our approach.

We believe that these revisions have significantly improved the paper, and we are now confident that it is ready for publication. The enhancements made to the manuscript ensure that our findings are presented more effectively, with stronger support from the visual data and references. The inclusion of the simulation model in the Appendix adds an important layer of transparency and allows readers to better grasp the methodology behind our scenarios.

We appreciate your continued support and hope that the revised paper meets the standards for publication.

Author Response File: Author Response.pdf

Reviewer 3 Report

Comments and Suggestions for Authors

I reviewed the revised version. I found that authors have properly answered my questions. Paper can be accepted.

Author Response

Thank you

Reviewer 4 Report

Comments and Suggestions for Authors

Accept

Author Response

Thank you