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Demand pull isntruments and the development of wind power in Europe: A counter-factual analysis

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  • Marc Baudry
  • Clément Bonnet

Abstract

Renewable energy technologies are called to play a crucial role in the reduction of greenhouse gas emissions. Since most of these technologies did not yet reach grid parity, public policies can rely on two types of approach: supply push and demand pull. The latter aims at creating demand for new technologies and at stimulating their diffusion. Nevertheless, due to the complex self-sustained dynamics of diffusion and to spillovers between the countries it is hard to determine whether newly installed capacities are imputable to national support policies and/or to policies implemented by neighbor countries. The paper addresses this problem. A micro-founded model of technology diffusion is developed and calibrated. It captures the influence of demand pull policies on installed capacities for six European countries over the last decade. A counter-factual analysis is carried out to assess the impact of demand pull policies on wind power development by taking into account the interplay between national policies via spillovers.

Suggested Citation

  • Marc Baudry & Clément Bonnet, 2016. "Demand pull isntruments and the development of wind power in Europe: A counter-factual analysis," Working Papers 1607, Chaire Economie du climat.
    • Handle: RePEc:cec:wpaper:1607
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    3. Julián D. Gómez, 2018. "¿Qué determina la adopción de tecnologías para la generación de energías renovables entre países?," Documentos CEDE 17132, Universidad de los Andes, Facultad de Economía, CEDE.
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    6. Xin-gang, Zhao & Wei, Wang & Jieying, Wang, 2022. "The policy effects of demand-pull and technology-push on the diffusion of wind power: A scenario analysis based on system dynamics approach," Energy, Elsevier, vol. 261(PA).
    7. Clement Bonnet & Samuel Carcanague & Emmanuel Hache & Gondia Seck & Marine Simoën, 2019. "Vers une Géopolitique de l'énergie plus complexe ? Une analyse prospective tridimensionnelle de la transition énergétique," Working Papers hal-02971706, HAL.
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