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Defining Prizes to encourage low carbon research, development and implementation - EP0207

A prize is an established tool for connecting market demand with innovators and vice versa. Prizes are not exclusively reserved for stimulating small players. For instance, the Ansari X-Prize was initially established to promote private exploration of space by small and large players. This first study is an essential preliminary step to survey the potential form, case for and feasibility of prizes before any detailed design work is carried out. The four aims of this study are as follows:

(i) To establish the range of possible span and definitions of prizes.
(ii) To identify the rationale for prizes, the conditions for success, and the risks of failure.
(iii) To develop an outline methodology for assessing the economic worth of a prize, for use in comparing options and in Regulatory Impact Assessment.

During this engagement, we will examine the nature of the innovation process that the prize is designed to influence. We will also consider barriers to innovation that a prize might help overcome. In addition, we will report on the current role of prizes in stimulating innovation and market change and present analysis on the ways in which prizes may influence the development of markets.
Time-Scale and Cost
From: 2008

To: 2008

Cost: £60,000
Contractor / Funded Organisations
Vivid Economics
Climate Change              
Economic Research              
Environmental Impact