JOURNAL: Sunset and sunrise business strategies shaping national energy transitions
Summary
Authors:
Brunilde Verrier
Neil Strachan
University College London
Sunset and sunrise business strategies shaping national energy transitions
Renewable and Sustainable Energy Reviews
May 2024
This paper addresses the societal impacts associated to business positioning towards decarbonisation. It focuses on “sunset” versus “sunrise” (declining vs emerging) corporate strategies and their interconnections with market developments, citizens engagement, and government support to low-carbon transitions. While preserving fossil-based assets may seem rational in the short-term, it can lead to long-term negative effects (such as the creation of stranded physical, financial, and human assets). Conversely, incumbents can enhance market certainty and generate industry-society co-benefits by engaging in skills transfers and sending clear innovation signals to investors. The findings of this research underscore the complexity of navigating decarbonisation and offer insights to enhance energy system modelling and to foster informed policymaking.