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Diffusion of Cogeneration in Swiss Industries: Economics, Technical Change, Field of Application, and Framework Conditions

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  • Reinhard Madlener
  • Marcel Wickart

Abstract

In this article we study the economics of the adoption and diffusion of cogeneration (CHP) systems. Based on microeconomic theoretical reasoning, we identify the main variables influencing the decision-making problem of firms that plan to adopt CHP technology, and how the adoption by other firms affects optimal adoption timing. We also consider CHP-related technical change, trends in the industries studied, field of application, and relevant framework conditions with a potential impact on CHP adoption and diffusion. In the descriptive analysis our focus is on industrial CHP systems in Switzerland (>1 MW e ), with particular emphasis on both the pulp and paper and the chemical industries.

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  • Reinhard Madlener & Marcel Wickart, 2004. "Diffusion of Cogeneration in Swiss Industries: Economics, Technical Change, Field of Application, and Framework Conditions," Energy & Environment, , vol. 15(2), pages 223-237, March.
    • Handle: RePEc:sae:engenv:v:15:y:2004:i:2:p:223-237
    DOI: 10.1260/095830504323153423
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    Cited by:

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    2. Valdes, Javier & Poque González, Axel Bastián & Masip Macia, Yunesky & Dorner, Wolfgang & Ramirez Camargo, Luis, 2020. "Unveiling the potential for combined heat and power in Chilean industry - A policy perspective," Energy Policy, Elsevier, vol. 140(C).
    3. Tuba Pekkirbizli & Mohamad Isam Almadani & Ludwig Theuvsen, 2015. "Food safety and quality assurance systems in Turkish agribusiness: an empirical analysis of determinants of adoption," Economia agro-alimentare, FrancoAngeli Editore, vol. 17(3), pages 31-55.
    4. Wickart, Marcel & Madlener, Reinhard, 2007. "Optimal technology choice and investment timing: A stochastic model of industrial cogeneration vs. heat-only production," Energy Economics, Elsevier, vol. 29(4), pages 934-952, July.
    5. Deepananda Herath & Spencer Henson, 2010. "Barriers to HACCP implementation: evidence from the food processing sector in Ontario, Canada," Agribusiness, John Wiley & Sons, Ltd., vol. 26(2), pages 265-279.
    6. Andreas Ferrara and Ian Lange, 2014. "Voluntary Programs to Encourage Diffusion: The Case of the Combined Heat-and-Power Partnership," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    7. Reinhard Madlener & Marcel Wickart, 2003. "The Economics of Adoption of Industrial Cogeneration: A Deterministic Model in Continuous Time," CEPE Working paper series 03-27, CEPE Center for Energy Policy and Economics, ETH Zurich.

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