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Learning Curve and Wind Power

  • Silvia Micheli

This study explores the reasons why countries have chosen subsidies to green electricity instead of implementing the more common Pigouvian tax on polluting emissions. I focus on the learning by doing effects from the production of wind power on the cost of future production as a justification for the observed policies. In doing so, I present two models that differ in the way I introduce learning. Under reasonable parameter values, the price paid to a firm for the energy produced from wind power is heterogeneous, and varies among the firms that produce energy from wind power according to the index of productivity of the firm itself. The suggested strategies of this research differ from the main price-driven schemes adopted by EU members; by comparing such results with European Union policy, the paper show that EU policy is not optimal.

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Paper provided by Università di Perugia, Dipartimento Economia in its series Quaderni del Dipartimento di Economia, Finanza e Statistica with number 81/2010.

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Length: 26 pages
Date of creation: 01 Dec 2010
Date of revision:
Handle: RePEc:pia:wpaper:81/2010
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  26. Luca Pieroni & Matteo Ricciarelli, 2005. "Modelling Dynamic Storage Function in Commodity Markets:Theory and Evidence," Quaderni del Dipartimento di Economia, Finanza e Statistica 11/2005, Università di Perugia, Dipartimento Economia.
  27. Simona Bigerna & Paolo Polinori, 2008. "The willingness to pay for Renewable Energy Sources (RES): the case of Italy with different survey approaches and under different EU “climate vision”. First results," Quaderni del Dipartimento di Economia, Finanza e Statistica 58/2008, Università di Perugia, Dipartimento Economia.
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  29. Cristiano Perugini & Marcello Signorelli, 2005. "Employment Differences, Convergences and Similarities in Italian Provinces," Quaderni del Dipartimento di Economia, Finanza e Statistica 07/2005, Università di Perugia, Dipartimento Economia.
  30. Slawomir Bukowski, 2008. "On the road to the euro zone. Currency rate stabilization: experiences of the selected EU countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 50/2008, Università di Perugia, Dipartimento Economia.
  31. Alessandra Righi & Dario Sciulli, 2009. "The Timing of the School-to-Permanent Work Transition: a Comparison across Ten European Countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 65/2009, Università di Perugia, Dipartimento Economia.
  32. Luisa Franzini & Margherita Giannoni, 2009. "Determinants of Health Disparities in Italian Regions," Quaderni del Dipartimento di Economia, Finanza e Statistica 70/2009, Università di Perugia, Dipartimento Economia.
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  34. Marcello Signorelli, 2005. "Employment and policies in Europe: a regional perspective," Quaderni del Dipartimento di Economia, Finanza e Statistica 05/2005, Università di Perugia, Dipartimento Economia.
  35. Luca Pieroni & Fabrizio Pompei, 2005. "Investimenti diretti esteri e innovazione in Umbria," Quaderni del Dipartimento di Economia, Finanza e Statistica 14/2005, Università di Perugia, Dipartimento Economia.
  36. Dario Sciulli & Marcello Signorelli, 2010. "University-to-work transitions: the case of Perugia," Quaderni del Dipartimento di Economia, Finanza e Statistica 77/2010, Università di Perugia, Dipartimento Economia.
  37. Slawomir I. BUKOWSKI, 2006. "The Maastricht convergence criteria and economic growth in the EMU," Quaderni del Dipartimento di Economia, Finanza e Statistica 24/2006, Università di Perugia, Dipartimento Economia.
  38. Roberto Basile & Davide Castellani & Antonello Zanfei, 2007. "Location choices of multinational firms in Europe: the role of EU cohesion policy," Quaderni del Dipartimento di Economia, Finanza e Statistica 32/2007, Università di Perugia, Dipartimento Economia.
  39. Bruno Bracalente & Cristiano Perugini, 2008. "Factor decomposition of cross-country income inequality with interaction effects," Quaderni del Dipartimento di Economia, Finanza e Statistica 54/2008, Università di Perugia, Dipartimento Economia.
  40. Cristiano Perugini & Fabrizio Pompei, 2008. "Technological Change, Labour Demand and Income Distribution in European Union Countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 56/2008, Università di Perugia, Dipartimento Economia.
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