Explaining experience curves for LNG liquefaction costs: Competition matter more than learning
Abstract
In this paper we seek to identify different driving forces behind the fall in LNG liquefaction unit costs. Our focus is on organizational learning including process specific R&D, but we also seek to account for autonomous technological change, scale effects and the effects of upstream competition among liquefaction technology suppliers. To our surprise we find that upstream competition is by far the most important factor. This may have implications for the future development in costs as the effect of increased upstream competition is temporary and likely to weaken a lot sooner than effects from learning and technological change. On the other hand, the increased competition could also spur more innovation, and induce a new drop in future unit costs.Download Info
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Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 393.Length:
Date of creation: Oct 2004
Date of revision:
Handle: RePEc:ssb:dispap:393
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Related research
Keywords: Learning curves; Mark-up pricing; LNG costs;Find related papers by JEL classification:
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply
- Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-11-22 (All new papers)
- NEP-COM-2004-11-22 (Industrial Competition)
References
References listed on IDEASPlease 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.:
- Ole Olesen & N. Petersen, 2003. "Introduction," Journal of Productivity Analysis, Springer, vol. 20(3), pages 237-241, November.
- Marvin B. Lieberman, 1984. "The Learning Curve and Pricing in the Chemical Processing Industries," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 213-228, Summer.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Fontini, Fulvio & Paloscia, Lorenzo, 2007. "The impact of the new investments in combined cycle gas turbine power plants on the Italian electricity price," Energy Policy, Elsevier, vol. 35(9), pages 4671-4676, September.
- Knut Einar Rosendahl & Eirik Lund Sagen, 2009.
"The Global Natural Gas Market: Will Transport Cost Reductions Lead to Lower Prices?,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 2), pages 17-40.
- Knut Einar Rosendahl & Eirik Lund Sagen, 2007. "The Global Natural Gas Market. Will transport cost reductions lead to lower prices?," Discussion Papers 523, Research Department of Statistics Norway.
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