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Focusing on the German electricity sector, this book evaluates the effectiveness of emissions trading in fostering climate change innovation. It employs both theoretical and empirical methods, utilizing an algebraic model to compare profits under different design options and conducting surveys before and after the trading scheme's implementation. The findings suggest that while the emissions trading system has made some progress in encouraging innovation, it has not yet reached its full potential for transforming the electricity industry towards greater sustainability.

The introduction of micro CHP – the simultaneous production of heat and power in a single building based on small energy conversion units such as Stirling and reciprocating engines or fuel cells – is of increasing political and public interest. This book introduces into micro CHP systems and technologies, and presents the results of the first such investigation carried out by four German research bodies.

Focusing on the dynamics of innovation within electricity systems, this book examines how new technologies and organizational changes can promote sustainability. It includes case studies on micro cogeneration, carbon capture, and emissions trading, providing valuable insights into the challenges and opportunities of innovation. The authors analyze drivers and barriers to change, offering strategic implications for innovation policies. This resource is essential for researchers, decision makers, and students interested in energy and climate change.