IDEAS home Printed from https://ideas.repec.org/a/wly/jpamgt/v35y2016i1p195-222.html
   My bibliography  Save this article

The Learning Process and Technological Change in Wind Power: Evidence from China's CDM Wind Projects

Author

Listed:
  • Tian Tang
  • David Popp

Abstract

The Clean Development Mechanism (CDM) is a project‐based carbon trade mechanism that subsidizes the users of climate‐friendly technologies and encourages technology transfer. The CDM has provided financial support for a large share of Chinese wind projects since 2002. Using pooled cross‐sectional data of 486 registered CDM wind projects in China from 2002 to 2009, we examine the determinants of technological change in wind power from a learning perspective. We use a spatial error model to estimate the effects of different channels of learning—learning through R&D in wind turbine manufacturing, learning from a firm's previous wind project experience, spillovers from industry‐wide project experience, and learning through the network interaction between project developer and turbine manufacturer—on technological change, measured as reductions in projected costs or as increased capacity factor across CDM wind projects. While we find that a project developer's previous experience matters, interactions between a wind project developer and its partner foreign turbine manufacturer lead to the largest cost reductions and capacity factor improvement. We also find that spillovers from industry‐wide experience only exist for wind farm installation. The evidence of industry‐wide spillovers and the joint learning within partnerships between project developers and foreign turbine manufacturers supports the subsidies to users of wind technologies, and policy regimes that promote international collaboration and technology transfer.

Suggested Citation

  • Tian Tang & David Popp, 2016. "The Learning Process and Technological Change in Wind Power: Evidence from China's CDM Wind Projects," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(1), pages 195-222, January.
    • Handle: RePEc:wly:jpamgt:v:35:y:2016:i:1:p:195-222
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/pam.21879
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jingbo Cui & Zhenxuan Wang & Haishan Yu, 2022. "Can International Climate Cooperation Induce Knowledge Spillover to Developing Countries? Evidence from CDM," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 923-951, August.
    2. Nemet, Gregory F. & O’Shaughnessy, Eric & Wiser, Ryan & Darghouth, Naïm & Barbose, Galen & Gillingham, Ken & Rai, Varun, 2017. "Characteristics of low-priced solar PV systems in the U.S," Applied Energy, Elsevier, vol. 187(C), pages 501-513.
    3. Du, Yimeng & Takeuchi, Kenji, 2019. "Can climate mitigation help the poor? Measuring impacts of the CDM in rural China," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 178-197.
    4. Dali T. Laxton, 2019. "Innovations in the Wind Energy Sector," CERGE-EI Working Papers wp647, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    5. Kim, Serena Y., 2020. "Institutional arrangements and airport solar PV," Energy Policy, Elsevier, vol. 143(C).
    6. Tu, Qiang & Betz, Regina & Mo, Jianlei & Fan, Ying & Liu, Yu, 2019. "Achieving grid parity of wind power in China – Present levelized cost of electricity and future evolution," Applied Energy, Elsevier, vol. 250(C), pages 1053-1064.
    7. David Popp, 2019. "Environmental policy and innovation: a decade of research," CESifo Working Paper Series 7544, CESifo.
    8. Schauf, Magnus & Schwenen, Sebastian, 2021. "Mills of progress grind slowly? Estimating learning rates for onshore wind energy," Energy Economics, Elsevier, vol. 104(C).
    9. Dafermos, Yannis & Nikolaidi, Maria & Galanis, Giorgos, 2018. "Climate Change, Financial Stability and Monetary Policy," Ecological Economics, Elsevier, vol. 152(C), pages 219-234.
    10. Tu, Qiang & Betz, Regina & Mo, Jianlei & Fan, Ying, 2019. "The profitability of onshore wind and solar PV power projects in China - A comparative study," Energy Policy, Elsevier, vol. 132(C), pages 404-417.
    11. David Popp, 2019. "Environmental Policy and Innovation: A Decade of Research," NBER Working Papers 25631, National Bureau of Economic Research, Inc.
    12. Tang, Tian, 2018. "Explaining technological change in the US wind industry: Energy policies, technological learning, and collaboration," Energy Policy, Elsevier, vol. 120(C), pages 197-212.
    13. Doblinger, Claudia & Surana, Kavita & Li, Deyu & Hultman, Nathan & Anadón, Laura Díaz, 2022. "How do global manufacturing shifts affect long-term clean energy innovation? A study of wind energy suppliers," Research Policy, Elsevier, vol. 51(7).
    14. Sascha Samadi, 2016. "A Review of Factors Influencing the Cost Development of Electricity Generation Technologies," Energies, MDPI, vol. 9(11), pages 1-25, November.
    15. Christopher J. Blackburn & Mallory E. Flowers & Daniel C. Matisoff & Juan Moreno‐Cruz, 2020. "Do Pilot and Demonstration Projects Work? Evidence from a Green Building Program," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(4), pages 1100-1132, September.
    16. Hayashi, Daisuke & Huenteler, Joern & Lewis, Joanna I., 2018. "Gone with the wind: A learning curve analysis of China's wind power industry," Energy Policy, Elsevier, vol. 120(C), pages 38-51.
    17. Stevens, Kelly A. & Tang, Tian & Hittinger, Eric, 2023. "Innovation in complementary energy technologies from renewable energy policies," Renewable Energy, Elsevier, vol. 209(C), pages 431-441.
    18. Beck, Marisa & Rivers, Nicholas & Wigle, Randall, 2018. "How do learning externalities influence the evaluation of Ontario's renewables support policies?," Energy Policy, Elsevier, vol. 117(C), pages 86-99.
    19. David Popp, 2020. "Promoting Clean Energy Innovation," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(04), pages 30-35, January.
    20. Lim, Taekyoung & Tang, Tian & Bowen, William M., 2021. "The Impact of Intergovernmental Grants on Innovation in Clean Energy and Energy Conservation: Evidence from the American Recovery and Reinvestment Act," Energy Policy, Elsevier, vol. 148(PA).
    21. Mai Miyamoto & Kenji Takeuchi, 2018. "Explaining Trade Flows in Renewable Energy Products: The Role of Technological Development," Discussion Papers 1819, Graduate School of Economics, Kobe University.
    22. Zhou, Shan & Yang, Pu, 2020. "Risk management in distributed wind energy implementing Analytic Hierarchy Process," Renewable Energy, Elsevier, vol. 150(C), pages 616-623.
    23. Kim, Jung Eun & Tang, Tian, 2020. "Preventing early lock-in with technology-specific policy designs: The Renewable Portfolio Standards and diversity in renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    24. Torben K. Mideksa, 2021. "Leadership and Climate Policy," CESifo Working Paper Series 9054, CESifo.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jpamgt:v:35:y:2016:i:1:p:195-222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/journal/34787/home .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.