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A review of problems associated with learning curves for solar and wind power technologies

Author

Listed:
  • Grafström, Jonas

    (The Ratio Institute)

  • Poudineh, Rahmat

    (Oxford Institute for Energy Studies)

Abstract

The learning curve concept, which relates historically observed reductions in the cost of a technology to the number of units produced or the capacity cumulatively installed, has been widely adopted to analyse the technological progress of renewable resources, such as solar PV and wind power, and to predict their future penetration. Learning curves were originally an empirical tool to evaluate learning-by-doing in manufacturing, and the jump to analysis of country-level technological change in renewable energy is an extension that requires careful consideration. This paper provides a review of the problems associated with learning curves for solar and wind power technologies. Issues such as whether the past cost reductions affect the future, learning curve specification problems, changing price ratios and econometric issues are discussed. Learning curves have a place in research, but there are several pitfalls that researchers should be careful not to overlook.

Suggested Citation

  • 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.
    • Handle: RePEc:hhs:ratioi:0347
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    References listed on IDEAS

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    More about this item

    Keywords

    learning curve; learning rate; energy technology; wind power; solar power;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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