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Wind power development : economics and policies

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Author Info
van Kooten, G. Cornelis
Timilsina, Govinda R.

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Abstract

This study reviews the prospects of wind power at the global level. Existing studies indicate that the earth's wind energy supply potential significantly exceeds global energy demand. Yet, only 1 percent of the global electricity demand is currently derived from wind power despite 40 percent annual growth in wind generating capacity over the past 25 years. More than 98 percent of total current wind power capacity is installed in the developed countries plus China and India. It has been estimated that wind power could supply 7 to 34 percent of global electricity needs by 2050. However, wind power faces a large number of technical, economic, financial, institutional, market, and other barriers. To overcome these barriers, many countries have employed various policy instruments, including capital subsidies, tax incentives, tradable energy certificates, feed-in tariffs, grid access guarantees and mandatory standards. Besides these policies, climate change mitigation initiatives resulting from the Kyoto Protocol (e.g., CO2-emission reduction targets in developed countries and the Clean Development Mechanism in developing countries) have played a significant role in promoting wind power.

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Publisher Info
Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4868.

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Date of creation: 01 Mar 2009
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Handle: RePEc:wbk:wbrwps:4868

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Related research
Keywords: Energy Production and Transportation; Carbon Policy and Trading; Windpower; Environment and Energy Efficiency; Energy and Environment;

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References listed on IDEAS
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  1. Maddaloni, Jesse D. & Rowe, Andrew M. & van Kooten, G. Cornelis, 2008. "Network constrained wind integration on Vancouver Island," Energy Policy, Elsevier, vol. 36(2), pages 591-602, February. [Downloadable!] (restricted)
  2. Neij, Lena, 2008. "Cost development of future technologies for power generation--A study based on experience curves and complementary bottom-up assessments," Energy Policy, Elsevier, vol. 36(6), pages 2200-2211, June. [Downloadable!] (restricted)
  3. Lawrence Pitt & G. Cornelis van Kooten & Murray Love & Ned Djilali, 2005. "Utility-scale Wind Power: Impacts of Increased Penetration," Working Papers 2005-01, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group. [Downloadable!]
  4. Jesse Maddaloni & Andrew Rowe & G. Cornelis van Kooten, 2007. "Wind Integration into Various Generation Mixtures," Working Papers 2007-05, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group. [Downloadable!]
  5. Anthony D. Owen, 2004. "Environmental Externalities, Market Distortions and the Economics of Renewable Energy Technologies," The Energy Journal, International Association for Energy Economics, vol. 25(3), pages 127-156.
  6. Kennedy, Scott, 2005. "Wind power planning: assessing long-term costs and benefits," Energy Policy, Elsevier, vol. 33(13), pages 1661-1675, September. [Downloadable!] (restricted)
  7. Ayres, Robert U., 2008. "Sustainability economics: Where do we stand?," Ecological Economics, Elsevier, vol. 67(2), pages 281-310, September. [Downloadable!] (restricted)
  8. Anderson, Dennis & Winne, Sarah, 2007. "Energy system change and external effects in climate change mitigation," Environment and Development Economics, Cambridge University Press, vol. 12(03), pages 359-378, June. [Downloadable!]
  9. Benjamin Sovacool, 2007. "Coal and nuclear technologies: creating a false dichotomy for American energy policy," Policy Sciences, Springer, vol. 40(2), pages 101-122, June. [Downloadable!] (restricted)
  10. Oswald, James & Raine, Mike & Ashraf-Ball, Hezlin, 2008. "Will British weather provide reliable electricity?," Energy Policy, Elsevier, vol. 36(8), pages 3202-3215, August. [Downloadable!] (restricted)
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This page was last updated on 2009-11-26.


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