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Learning-by-doing, Learning Spillovers and the Diffusion of Fuel Cell Vehicles

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Author Info
Malte Schwoon () (Statkraft, Duesseldorf)

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Abstract

Fuel cell vehicles (FCVs) running on hydrogen do not cause local air pollution. Depending on the energy sources used to produce the hydrogen they may also reduce greenhouse gases in the long-term. Besides problems related to the necessary investments into hydrogen infrastructure, there is a general notion that current fuel cells costs are too high to be competitive with conventional engines, creating an insurmountable barrier to introduction. But given historical evidence from many other technologies it is highly likely that learning by doing (LBD) would lead to substantial cost reductions. In this study we implement potential cost reductions from LBD into an existing agent based model that captures the main dynamics of the introduction of the new technology together with hydrogen infrastructure build up. Assumptions about the learning rate turn out to have a critical impact on the projected diffusion of the FCVs. Moreover, LBD could imply a substantial first mover advantage. We also address the impact of learning spillovers between producers and find that a government might face a policy trade off between fostering diffusion by facilitating learning spillovers and protecting the relative advantage of a national technological leader.

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File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/WP-FNU-112FCV_learning_by_doing.pdf
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Publisher Info
Paper provided by Research unit Sustainability and Global Change, Hamburg University in its series Working Papers with number FNU-112.

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Length: 36 pages
Date of creation: Jun 2006
Date of revision: Jun 2006
Handle: RePEc:sgc:wpaper:112

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Related research
Keywords: Fuel cell vehicles; Hydrogen; Learning by doing; Agent based modeling;

Other versions of this item:

Find related papers by JEL classification:
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:
  1. Rasmussen, Tobias N., 2001. "CO2 abatement policy with learning-by-doing in renewable energy," Resource and Energy Economics, Elsevier, vol. 23(4), pages 297-325, October. [Downloadable!] (restricted)
  2. April Mitchell Franco & Darren Filson, 2000. "Knowledge diffusion through employee mobility," Staff Report 272, Federal Reserve Bank of Minneapolis. [Downloadable!]
    Other versions:
  3. Manne, Alan S. & Barreto, Leonardo, 2004. "Learn-by-doing and carbon dioxide abatement," Energy Economics, Elsevier, vol. 26(4), pages 621-633, July. [Downloadable!] (restricted)
  4. Junginger, M. & Faaij, A. & Turkenburg, W. C., 2005. "Global experience curves for wind farms," Energy Policy, Elsevier, vol. 33(2), pages 133-150, January. [Downloadable!] (restricted)
  5. Manne, Alan & Richels, Richard, 2004. "The impact of learning-by-doing on the timing and costs of CO2 abatement," Energy Economics, Elsevier, vol. 26(4), pages 603-619, July. [Downloadable!] (restricted)
  6. Mark Rosenzweig & Andrew D. Foster, . "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Home Pages _068, University of Pennsylvania. [Downloadable!]
    Other versions:
  7. Rebecca Achee Thornton & Peter Thompson, 2001. "Learning from Experience and Learning from Others: An Exploration of Learning and Spillovers in Wartime Shipbuilding," American Economic Review, American Economic Association, vol. 91(5), pages 1350-1368, December. [Downloadable!] (restricted)
  8. Malte Schwoon, 2005. "Simulating the Adoption of Fuel Cell Vehicles," Working Papers FNU-59, Research unit Sustainability and Global Change, Hamburg University, revised Feb 2006. [Downloadable!]
  9. Salvador Barrios & Eric Strobl, 2004. "Learning by Doing and Spillovers: Evidence from Firm-Level Panel Data," Review of Industrial Organization, Springer, vol. 25(2), pages 175-203, 06. [Downloadable!] (restricted)
    Other versions:
  10. Gritsevskyi, Andrii & Nakicenovi, Nebojsa, 2000. "Modeling uncertainty of induced technological change," Energy Policy, Elsevier, vol. 28(13), pages 907-921, November. [Downloadable!] (restricted)
  11. Richard K. Lester & Mark J. McCabe, 1993. "The Effect of Industrial Structure on Learning by Doing in Nuclear Power Plant Operation," RAND Journal of Economics, The RAND Corporation, vol. 24(3), pages 418-438, Autumn. [Downloadable!] (restricted)
  12. Marco Valente, 1998. "Laboratory for Simulation Development," DRUID Working Papers 98-5, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  13. A. M. Spence, 1981. "The Learning Curve and Competition," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 49-70, Spring. [Downloadable!] (restricted)
  14. Sabine Messner, 1997. "Endogenized technological learning in an energy systems model," Journal of Evolutionary Economics, Springer, vol. 7(3), pages 291-313. [Downloadable!] (restricted)
  15. Kwasnicki, Witold & Kwasnicka, Halina, 1992. "Market, innovation, competition: An evolutionary model of industrial dynamics," Journal of Economic Behavior & Organization, Elsevier, vol. 19(3), pages 343-368, December. [Downloadable!] (restricted)
  16. Drew Fudenberg & Jean Tirole, 1983. "Learning-by-Doing and Market Performance," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 522-530, Autumn. [Downloadable!] (restricted)
  17. Bunch, David S. & Bradley, Mark & Golob, Thomas F. & Kitamura, Ryuichi & Occhiuzzo, Gareth P., 1993. "Demand for clean-fuel vehicles in California: A discrete-choice stated preference pilot project," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(3), pages 237-253, May. [Downloadable!] (restricted)
  18. Irwin, Douglas A & Klenow, Peter J, 1994. "Learning-by-Doing Spillovers in the Semiconductor Industry," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1200-1227, December. [Downloadable!] (restricted)
  19. McDonald, Alan & Schrattenholzer, Leo, 2001. "Learning rates for energy technologies," Energy Policy, Elsevier, vol. 29(4), pages 255-261, March. [Downloadable!] (restricted)
  20. Ghemawat, Pankaj & Spence, A Michael, 1985. "Learning Curve Spillovers and Market Performance," The Quarterly Journal of Economics, MIT Press, vol. 100(5), pages 839-52, Supp.. [Downloadable!] (restricted)
  21. Malte Schwoon, 2006. "Simulating the adoption of fuel cell vehicles," Journal of Evolutionary Economics, Springer, vol. 16(4), pages 435-472, October. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, 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.)

  1. Gary W. Yohe & Richard S.J. Tol, 2007. "Precaution And A Dismal Theorem: Implications For Climate Policy And Climate Research," Working Papers FNU-145, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2007. [Downloadable!]
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