IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v24y2022i7d10.1007_s10668-021-01818-x.html
   My bibliography  Save this article

Wind energy and sustainable electricity generation: evidence from Germany

Author

Listed:
  • Sakiru Adebola Solarin

    (University of Nottingham Malaysia Jalan Broga)

  • Mufutau Opeyemi Bello

    (University of Ilorin)

Abstract

Wind energy is one of the renewable energy sources that has been touted to address the challenges of energy security and environmental degradation. This is only attainable if countries with substantial wind energy potential use it in significant proportion to satisfy their energy needs. One promising sector where wind energy can be employed to actualize this potential is the electricity sector. However, the current reality is that fossil fuels still dominate the energy profiles of most economies of the world, including the advanced economies, with wind renewable energy source accounting for a very small proportion of the energy mix. Germany is one of the few countries that offers promising opportunities in deploying wind energy to its full potentials. This study therefore explores the feasibility of substituting wind energy for nuclear energy and other fossil fuels using Germany as a country of focus. We use the ridge regression procedure to analyse yearly time series data for the German power sector that spans the period 1986 to 2018. With respect to output elasticities of the energy inputs, the results reveal that wind and natural gas have positive output elasticity estimates while the estimates for nuclear and coal are negative. We also found that all the inputs pairs have positive substitution elasticity estimates between them. With respect to wind energy, the highest substitutability estimate occurred with nuclear power which is followed by natural gas and then coal. The study recommended that policies such as granting of tax credit for wind energy technology, reduction in property taxes for wind power facilities, and allocation of fund for research and development (R&D) in wind energy technology are recommended to promote the use of wind energy in the economy.

Suggested Citation

  • Sakiru Adebola Solarin & Mufutau Opeyemi Bello, 2022. "Wind energy and sustainable electricity generation: evidence from Germany," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(7), pages 9185-9198, July.
    • Handle: RePEc:spr:endesu:v:24:y:2022:i:7:d:10.1007_s10668-021-01818-x
    DOI: 10.1007/s10668-021-01818-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-021-01818-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-021-01818-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ortega-Izquierdo, Margarita & Río, Pablo del, 2020. "An analysis of the socioeconomic and environmental benefits of wind energy deployment in Europe," Renewable Energy, Elsevier, vol. 160(C), pages 1067-1080.
    2. Hossain, A. K. M. Nurul & Serletis, Apostolos, 2020. "Biofuel substitution in the U.S. transportation sector," The Journal of Economic Asymmetries, Elsevier, vol. 22(C).
    3. Lin, Boqiang & Ankrah, Isaac, 2019. "On Nigeria's renewable energy program: Examining the effectiveness, substitution potential, and the impact on national output," Energy, Elsevier, vol. 167(C), pages 1181-1193.
    4. Douglas Mugabe & Levan Elbakidze & Gulnara Zaynutdinova, 2020. "Elasticity of substitution and technical efficiency: evidence from the US electricity generation," Applied Economics, Taylor & Francis Journals, vol. 52(16), pages 1789-1805, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mufutau Opeyemi, Bello, 2021. "Path to sustainable energy consumption: The possibility of substituting renewable energy for non-renewable energy," Energy, Elsevier, vol. 228(C).
    2. Mufutau Opeyemi Bello & Sakiru Adebola Solarin, 2022. "Searching for sustainable electricity generation: The possibility of substituting coal and natural gas with clean energy," Energy & Environment, , vol. 33(1), pages 64-84, February.
    3. Tinta, Abdoulganiour Almame, 2023. "Education puzzle, financial inclusion, and energy substitution: Growth Scales," Energy Policy, Elsevier, vol. 175(C).
    4. Makpal Zholamanova & Nurbakhyt Nurmukhametov & Mikhail Tolmachev & Kassymkhan Sarsen & Altyn Amerkhanova, 2023. "Comparative Analysis of Strategies for Innovative Development of the Fuel and Energy Complex: The Experience of the EU Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 128-134, January.
    5. Agyeman, Stephen Duah & Lin, Boqiang, 2022. "Nonrenewable and renewable energy substitution, and low–carbon energy transition: Evidence from North African countries," Renewable Energy, Elsevier, vol. 194(C), pages 378-395.
    6. Mustapha Mukhtar & Sandra Obiora & Nasser Yimen & Zhang Quixin & Olusola Bamisile & Pauline Jidele & Young I. Irivboje, 2021. "Effect of Inadequate Electrification on Nigeria’s Economic Development and Environmental Sustainability," Sustainability, MDPI, vol. 13(4), pages 1-24, February.
    7. Wesseh, Presley K. & Lin, Boqiang, 2020. "Energy substitution and technology costs in a transitional economy," Energy, Elsevier, vol. 203(C).
    8. Temitope Adeyemi-Kayode & Sanjay Misra & Hope Orovwode & Anthony Adoghe, 2022. "Modeling the Next Decade of Energy Sustainability: A Case of a Developing Country," Energies, MDPI, vol. 15(14), pages 1-19, July.
    9. Relva, Stefania Gomes & Silva, Vinícius Oliveira da & Gimenes, André Luiz Veiga & Udaeta, Miguel Edgar Morales & Ashworth, Peta & Peyerl, Drielli, 2021. "Enhancing developing countries’ transition to a low-carbon electricity sector," Energy, Elsevier, vol. 220(C).
    10. Nassef, Ahmed M. & Sayed, Enas T. & Rezk, Hegazy & Inayat, Abrar & Yousef, Bashria A.A. & Abdelkareem, Mohammad A. & Olabi, A.G., 2020. "Developing a fuzzy-model with particle swarm optimization-based for improving the conversion and gasification rate of palm kernel shell," Renewable Energy, Elsevier, vol. 166(C), pages 125-135.
    11. Dincer, Hasan & Yuksel, Serhat, 2019. "Balanced scorecard-based analysis of investment decisions for the renewable energy alternatives: A comparative analysis based on the hybrid fuzzy decision-making approach," Energy, Elsevier, vol. 175(C), pages 1259-1270.
    12. Opeyemi Bello, Mufutau & Adebola Solarin, Sakiru & Yee Yen, Yuen, 2018. "Interfuel Substitution, Hydroelectricity Consumption and CO2 Emissions Mitigation in Malaysia: Evidence from a Transcendental Logarithm (trans-log) Cost Function Framework," Working Papers 4, Department of Economics, University of Ilorin.
    13. Nwozor, Agaptus & Oshewolo, Segun & Owoeye, Gbenga & Okidu, Onjefu, 2021. "Nigeria's quest for alternative clean energy development: A cobweb of opportunities, pitfalls and multiple dilemmas," Energy Policy, Elsevier, vol. 149(C).
    14. Kocak, Emrah & Bilgili, Faik & Bulut, Umit & Kuskaya, Sevda, 2022. "Is ethanol production responsible for the increase in corn prices?," Renewable Energy, Elsevier, vol. 199(C), pages 689-696.
    15. Taitiya Kenneth Yuguda & Sunday Adiyoh Imanche & Tian Ze & Tosin Yinka Akintunde & Bobby Shekarau Luka, 2023. "Hydropower development, policy and partnership in the 21st century: A China-Nigeria outlook," Energy & Environment, , vol. 34(4), pages 1170-1204, June.

    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:spr:endesu:v:24:y:2022:i:7:d:10.1007_s10668-021-01818-x. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.