The purpose and role of product standards in the commercialization of new energy technologies : a preliminary analysis

Abstract

This paper discusses the role of product standards in a commercialization program. The usefulness of standards is explained as arising from the existence of transaction costs and other market failures in the operation of markets, and the effects of standards upon market operation are broadly discussed. The role of standards in a commercialization program is then explored and is seen as justified by the existence of market failures and the lack of suitable options other than standards available for remedying certain particulars of the situation. A description of the voluntary standards system follows to show how its use in a commercialization program may modify the governmental role.