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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, , vol. 40(1_suppl), pages 127-142, June.
    • Handle: RePEc:sae:enejou:v:40:y:2019:i:1_suppl:p:127-142
    DOI: 10.5547/01956574.40.SI1.gben
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    References listed on IDEAS

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    1. Chang, Yoosoon & Martinez-Chombo, Eduardo, 2003. "Electricity Demand Analysis Using Cointegration and Error-Correction Models with Time Varying Parameters: The Mexican Case," Working Papers 2003-08, Rice University, Department of Economics.
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    3. Sanchirico, James N. & Wilen, James E., 2005. "Optimal spatial management of renewable resources: matching policy scope to ecosystem scale," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 23-46, July.
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