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Scrapping a Wind Turbine: Policy Changes, Scrapping Incentives and Why Wind Turbines in Good Locations Get Scrapped First

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  • Johannes Mauritzen

Abstract

The most common reason for scrapping a wind turbine in Denmark is to make room for a newer turbine. The decision to scrap a wind turbine is then highly dependent on an opportunity cost that comes from the interaction of scarce land resources, technological change and changes in subsidy policy. Using a Cox regression model I show that turbines that are located in areas with better wind resources are at a higher risk of being scrapped. Policies put in place in order to encourage the scrapping of older, poorly placed turbines actually have a larger effect on well-placed turbines.
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Suggested Citation

  • Johannes Mauritzen, 2014. "Scrapping a Wind Turbine: Policy Changes, Scrapping Incentives and Why Wind Turbines in Good Locations Get Scrapped First," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    • Handle: RePEc:aen:journl:ej35-2-08
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    Cited by:

    1. Fogelberg, Sara & Lazarczyk, Ewa, 2017. "Wind power volatility and its impact on production failures in the Nordic electricity market," Renewable Energy, Elsevier, vol. 105(C), pages 96-105.
    2. McInerney, Celine & Bunn, Derek W., 2017. "Optimal over installation of wind generation facilities," Energy Economics, Elsevier, vol. 61(C), pages 87-96.
    3. Chronopoulos, Michail & Siddiqui, Afzal, 2014. "When is it Better to Wait for a New Version? Optimal Replacement of an Emerging Technology under Uncertainty," Discussion Papers 2014/26, Norwegian School of Economics, Department of Business and Management Science.
    4. Mauritzen, Johannes, 2020. "Will the locals benefit?," Energy Policy, Elsevier, vol. 142(C).
    5. Bernardino Adão & Borghan N. Narajabad & Ted Temzelides, 2022. "Renewable Technology Adoption Costs and Economic Growth," Finance and Economics Discussion Series 2022-045, Board of Governors of the Federal Reserve System (U.S.).
    6. Adão, Bernardino & Narajabad, Borghan & Temzelides, Ted, 2024. "Renewable technology adoption costs and economic growth," Energy Economics, Elsevier, vol. 129(C).
    7. Pär Holmberg & Thomas Tangerås, 2023. "A Survey of Capacity Mechanisms: Lessons for the Swedish Electricity Market," The Energy Journal, , vol. 44(6), pages 275-304, November.

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