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Pulled or pushed? The spatial diffusion of wind energy between local demand and supply

Author

Listed:
  • Marcel Bednarz
  • Tom Broekel

Abstract

This paper contributes to and connects the literature on spatial innovation diffusion, entre-preneurship, and industry life-cycles by disentangling the relevance of local demand and sup-ply in the adoption of wind energy production. More precisely, we evaluate the strength of local supply-push effects with those of local demand-pull over the course of the evolution of an industry and its main product evolution. By using Bayesian survival models with time-dependent data of wind turbine deployment and firm foundation for 402 German regions between the years 1970 and 2015, we show that the spatial evolution of the German wind energy industry was more strongly influenced by local demand-pull than local supply-push processes. New producers are found to emerge in proximity to existing local demand for wind turbines. No evidence was found for producers being able to create local demand for their products by pushing the adoption of the technology in their regions.

Suggested Citation

  • Marcel Bednarz & Tom Broekel, 2020. "Pulled or pushed? The spatial diffusion of wind energy between local demand and supply," Papers in Evolutionary Economic Geography (PEEG) 2008, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2020.
  • Handle: RePEc:egu:wpaper:2008
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    File URL: http://econ.geo.uu.nl/peeg/peeg2008.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    supply-push; demand-pull; Bayesian survival analysis; wind energy;
    All these keywords.

    JEL classification:

    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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