Learning curves and changing product attributes: the case of wind turbines
AbstractThe 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.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0618.
Date of creation: Feb 2006
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Learning curve; Turbine scale; Wind turbines;
Find related papers by JEL classification:
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-19 (All new papers)
- NEP-BEC-2006-02-19 (Business Economics)
- NEP-ENE-2006-02-19 (Energy Economics)
- NEP-INO-2006-02-19 (Innovation)
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Cambridge Working Papers in Economics
0620, Faculty of Economics, University of Cambridge.
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