According to a new study from New York University's (NYU) Stern School of Business, wind and geothermal energy have shown the fastest improvements and are the most efficient renewable energy resources, yielding greater returns on the research and development (R&D) invested in them compared to most other energy alternatives.
NYU Stern Professor Melissa Schilling, an expert in strategic management and technology and innovation management, finds that the cost of generating electricity with geothermal or wind energy is a fraction of the cost of solar energy.
In addition, the performance of both is improving much more per dollar of R&D invested in them than solar technologies. This is the first study to explore the trajectory of performance improvement of renewable energy alternatives.
Schilling examined data on government R&D investment and technological improvement and found that both wind and geothermal energy technologies have been underfunded by national governments relative to funding for solar technologies, and government funding of fossil fuel technologies might be excessive, given their diminishing performance.
For more information, visit stern.nyu.edu.
SOURCE: New York University, Stern School of Business