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Heterogeneous Returns to Scale of Wind Farms in Northern Europe

Author

Listed:
  • Giacomo Benini
  • Maria Carvalho
  • Ludovic Gaudard
  • Patrick Jochem
  • Kaveh Madani

Abstract

The present paper tries to identify the optimal size of a wind farm using North European data. An empirical analysis of 61 sites constructed between 2004 and 2014 suggests that economies-of-scale are highly heterogeneous across on-shore and off-shore projects. A Varying Coefficient Model captures such diversity by making the impact of the farm site on the amount of its potential capacity a non-linear function of the number of installed turbines. The resulting scale elasticities suggest that small on-shore farms have a bigger per-turbines output than off-shore ones, while the opposite is true for big projects.

Suggested Citation

  • Giacomo Benini & Maria Carvalho & Ludovic Gaudard & Patrick Jochem & Kaveh Madani, 2019. "Heterogeneous Returns to Scale of Wind Farms in Northern Europe," The Energy Journal, International Association for Energy Economics, vol. 0(The New E).
    • Handle: RePEc:aen:journl:ej40-si1-benini
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    JEL classification:

    • F0 - International Economics - - General

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