Assess economic and market potential of technologies with highest technical potential

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Stage 3

Key Product

  • Economic and market feasibility assessments, including marginal cost curves

Clean Energy Technologies

Market analysis first involves assessing the economic potential of technology options identified as technically promising in the previous step. This assessment provides an analysis of economic potential of different technologies and initiatives taking into account both technical attributes and economic constraints such as cost.

Clean Energy Market Analysis Toolkit

One example of an economic assessment tool for a particular technology is the System Advisor Model (SAM), formerly the Solar Advisor Model.

Once the economic potential of a technology is understood it is also important to assess the general market environment related to that technology e.g., domestic demand, financing, number of manufacturers, export and import market, etc. The previous public and private sector capacity analysis should be used to frame technology specific market analyses. Finally, a marginal abatement cost curve can be used to assess economic potential of different technology options in relation to GHG reduction potential to provide a tool for further analyzing technology options.

  • Assess technical and economic feasibility of improved practices or technologies, including marginal abatement cost curves
  • In analyses of economic feasibility, explore how changing the policy environment may alter economic incentives and opportunity costs
  • Define criteria for measuring impacts
  • Identify and examine qualitatively how potential low-emission technologies, policies and initiatives directly and indirectly contribute to development goals and long-term climate resiliency
Market analysis examples

Land Use Initiatives

Stakeholders in this stage can use analyses of biophysical and economic mitigation potential to establish short and long-term goals. Stakeholders will want to consider the biophysical potential of the landscape to mitigate emissions and the economic costs and benefits to shift to activities with low emission or emission removals, including the market potential for goods produced using different agricultural and timber practices, opportunities to link into carbon markets, and capacity constraints in the public and private sectors.

LEDS Land Use Assessment Toolkit


What are some good examples of market analyses and data needed to perform this type of analysis?

What tools are available to support market analysis of clean energy technologies?

What market analyses are available to support emission reductions in the land-use sector?

What tools can help me evaluate GHG reduction opportunities related to sustainable forestry in my country?

What resources can help me integrate agricultural planning when developing a strategy?