Realizing a Green Hydrogen Economy: An Examination of Influencing Factors

Abstract

The significance of hydrogen in the context of the ongoing energy transition is growing noticeably. This study presents a review of the literature on the factors that influence the development of a hydrogen economy. Based on an analysis of relevant studies, we suggest the factors that drive the growth of a hydrogen economy. Unlike traditional sector-based analyses, our approach is a comprehensive examination of the hydrogen value chain, incorporating stakeholder perspectives that are frequently overlooked in technical and economic research. Drawing on recent International Energy Agency assessments and extensive desk research, we identify barriers and propose solutions critical to the successful implementation of a hydrogen economy. The study then introduces a conceptual causal loop diagram and an illustrative framework that visually depict the intricate interconnections between stakeholders and influencing factors. The findings emphasize the importance of increased political support, particularly for addressing concerns about technological immaturity and economic viability, and strategic collaborations between private companies, academia, and government institutions. The proposed solutions, which include research and development support and the formulation of national hydrogen strategies, highlight the critical role of a well-defined policy framework in advancing the green hydrogen economy. This study significantly enriches both academic understanding and practical decision-making by providing valuable insights for long-term hydrogen development.