Explaining experience curves for new energy technologies: A case study of liquefied natural gas
AbstractMany new energy technologies seem to experience a fall in unit price as they mature. In this paper we study the unit price of liquefying natural gas in order to make it transportable by ship to gas power installations all over the world. Our point of departure is the experience curve approach, however unlike many other studies of new energy technologies, we also seek to account for autonomous technological change, scale effects and the effects of upstream competition among technology suppliers. To our surprise we find that upstream competition is by far the most important factor contributing to the fall in unit price. With respect to the natural gas business, this may have implications for the future development in prices as the effect of increased upstream competition is temporary and likely to weaken a lot sooner than effects from learning and technological change. Another more general policy implication, is that while promoting new energy technologies, governments must not forget to pay attention to competition policy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 30 (2008)
Issue (Month): 6 (November)
Contact details of provider:
Web page: http://www.elsevier.com/locate/eneco
Learning curves Mark-up pricing LNG costs;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Neij, Lena, 1997. "Use of experience curves to analyse the prospects for diffusion and adoption of renewable energy technology," Energy Policy, Elsevier, vol. 25(13), pages 1099-1107, November.
- Clarke, Leon & Weyant, John & Birky, Alicia, 2006. "On the sources of technological change: Assessing the evidence," Energy Economics, Elsevier, vol. 28(5-6), pages 579-595, November.
- A. M. Spence, 1981. "The Learning Curve and Competition," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 49-70, Spring.
- Ibenholt, Karin, 2002. "Explaining learning curves for wind power," Energy Policy, Elsevier, vol. 30(13), pages 1181-1189, October.
- Isoard, Stephane & Soria, Antonio, 2001. "Technical change dynamics: evidence from the emerging renewable energy technologies," Energy Economics, Elsevier, vol. 23(6), pages 619-636, November.
- Rai, Varun & Victor, David G. & Thurber, Mark C., 2010. "Carbon capture and storage at scale: Lessons from the growth of analogous energy technologies," Energy Policy, Elsevier, vol. 38(8), pages 4089-4098, August.
- Massol, Olivier & Tchung-Ming, Stéphane, 2010.
"Cooperation among liquefied natural gas suppliers: Is rationalization the sole objective?,"
Elsevier, vol. 32(4), pages 933-947, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.