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Learning curves and changing product attributes: the case of wind turbines

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  • Coulomb, L.
  • Neuhoff, K.

Abstract

The heuristic concept of learning curves describes cost reductions as a function of cumulative production. A study of the Liberty shipbuilders suggested that product quality and production scale are other relevant factors that affect costs. Significant changes of attributes of a technology must be corrected when assessing the impact of learning-by-doing. We use an engineering-based model to capture the cost changes of wind turbines that can be attributed to changes in turbine size. We estimate the learning curve and turbine size parameters using more than 1500 price points from 1991 to 2003. The fit between model and empirical data confirms the concept.

Suggested Citation

  • Coulomb, L. & Neuhoff, K., 2006. "Learning curves and changing product attributes: the case of wind turbines," Cambridge Working Papers in Economics 0618, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:0618
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    Cited by:

    1. Neuhoff, Karsten & Ehrenmann, Andreas & Butler, Lucy & Cust, Jim & Hoexter, Harriet & Keats, Kim & Kreczko, Adam & Sinden, Graham, 2008. "Space and time: Wind in an investment planning model," Energy Economics, Elsevier, vol. 30(4), pages 1990-2008, July.
    2. Stefan Ambec & Claude Crampes, 2010. "Electricity Production with Intermittent Sources of Energy," LERNA Working Papers 10.07.313, LERNA, University of Toulouse.
    3. Peter Hartley & Kenneth B. Medlock III & Ted Temzelides & Xinya Zhang, 2016. "Energy Sector Innovation and Growth: An Optimal Energy Crisis," The Energy Journal, , vol. 37(1), pages 233-258, January.
    4. Marc Baudry & Clément Bonnet, 2016. "Demand pull isntruments and the development of wind power in Europe: A counter-factual analysis," Working Papers 1607, Chaire Economie du climat.
    5. Wilson, Charlie, 2012. "Up-scaling, formative phases, and learning in the historical diffusion of energy technologies," Energy Policy, Elsevier, vol. 50(C), pages 81-94.
    6. Dosi, Giovanni & Grazzi, Marco & Mathew, Nanditha, 2017. "The cost-quantity relations and the diverse patterns of “learning by doing”: Evidence from India," Research Policy, Elsevier, vol. 46(10), pages 1873-1886.
    7. Mauleón, Ignacio, 2016. "Photovoltaic learning rate estimation: Issues and implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 507-524.
    8. Qiu, Yueming & Anadon, Laura D., 2012. "The price of wind power in China during its expansion: Technology adoption, learning-by-doing, economies of scale, and manufacturing localization," Energy Economics, Elsevier, vol. 34(3), pages 772-785.
    9. Lindman, Åsa & Söderholm, Patrik, 2012. "Wind power learning rates: A conceptual review and meta-analysis," Energy Economics, Elsevier, vol. 34(3), pages 754-761.
    10. Hong, Soonpa & Yang, Taeyong & Chang, Hyun Joon & Hong, Sungjun, 2020. "The effect of switching renewable energy support systems on grid parity for photovoltaics: Analysis using a learning curve model," Energy Policy, Elsevier, vol. 138(C).
    11. Berry, David, 2009. "Innovation and the price of wind energy in the US," Energy Policy, Elsevier, vol. 37(11), pages 4493-4499, November.
    12. Partridge, Ian, 2013. "Renewable electricity generation in India—A learning rate analysis," Energy Policy, Elsevier, vol. 60(C), pages 906-915.
    13. Sascha Samadi, 2016. "A Review of Factors Influencing the Cost Development of Electricity Generation Technologies," Energies, MDPI, vol. 9(11), pages 1-25, November.
    14. Ambec, Stefan & Crampes, Claude, 2012. "Electricity provision with intermittent sources of energy," Resource and Energy Economics, Elsevier, vol. 34(3), pages 319-336.
    15. Ashraf-Ball, Hezlin & Oswald, Andrew J. & Oswald, James I., 2009. "Hydrogen Transport and the Spatial Requirements of Renewable Energy," The Warwick Economics Research Paper Series (TWERPS) 903, University of Warwick, Department of Economics.
    16. Peter R. Hartley & Kenneth B. Medlock III, 2017. "The Valley of Death for New Energy Technologies," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    17. Samadi, Sascha, 2018. "The experience curve theory and its application in the field of electricity generation technologies – A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2346-2364.
    18. Grafström, Jonas & Poudineh, Rahmat, 2021. "A review of problems associated with learning curves for solar and wind power technologies," Ratio Working Papers 347, The Ratio Institute.
    19. Kahouli-Brahmi, Sondes, 2008. "Technological learning in energy-environment-economy modelling: A survey," Energy Policy, Elsevier, vol. 36(1), pages 138-162, January.
    20. Marc Baudry & Clément Bonnet, 2019. "Demand-Pull Instruments and the Development of Wind Power in Europe: A Counterfactual Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(2), pages 385-429, June.
    21. Yu, Yang & Li, Hong & Che, Yuyuan & Zheng, Qiongjie, 2017. "The price evolution of wind turbines in China: A study based on the modified multi-factor learning curve," Renewable Energy, Elsevier, vol. 103(C), pages 522-536.
    22. Hong, Sungjun & Chung, Yanghon & Woo, Chungwon, 2015. "Scenario analysis for estimating the learning rate of photovoltaic power generation based on learning curve theory in South Korea," Energy, Elsevier, vol. 79(C), pages 80-89.
    23. Elia, A. & Kamidelivand, M. & Rogan, F. & Ó Gallachóir, B., 2021. "Impacts of innovation on renewable energy technology cost reductions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).

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    More about this item

    Keywords

    Learning curve; Turbine scale; Wind turbines;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • L64 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Machinery; Business Equipment; Armaments
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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