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The Displacement Impacts of Wind Power Electricity Generation: Costly Lessons from Ontario

Author

Listed:
  • Pejman Bahramian

    (Department of Economics, Queen’s University, Kingston, Canada)

  • Glenn P. Jenkins

    (Department of Economics, Queen's University, Kingston, Canada and Eastern Mediterranean University, North Cyprus)

  • Frank Milne

    (Department of Economics, Queen’s University, Kingston, Canada)

Abstract

The displacement impacts of wind power generation on other generation technologies are estimated for Ontario. In addition, their annual financial benefits, costs, and international stakeholder impacts are measured. For every 100 MWh generated, almost 53 MWh of gas output and 23 MWh of hydro output is displaced, and 19 MWh of power is exported. Ontario loses 826.42 million USD annually from having wind power generation in the system, while the US gains 7.50 million USD through electricity exported from Ontario. Wind power generation has produced an estimated 108.98 million USD in reducing CO2 emissions in the US and Ontario through displacing thermal generation. Comparing the environmental benefits with the net cost to consumers shows the promotion of wind power generation to be largely a waste of Ontario’s resources.

Suggested Citation

  • Pejman Bahramian & Glenn P. Jenkins & Frank Milne, 2020. "The Displacement Impacts of Wind Power Electricity Generation: Costly Lessons from Ontario," Development Discussion Papers 2020-22, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:4563
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    References listed on IDEAS

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    Cited by:

    1. Jiarong Shi & Zihao Jiang & Biao Luo, 2022. "Economic policy, regulatory policy, or soft policy: Which category of policy can effectively improve the green innovation of Chinese wind power industry?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2284-2298, September.
    2. Pejman Bahramian, 2021. "Integration of wind power into an electricity system using pumped-storage: Economic challenges and stakeholder impacts," Working Paper 1478, Economics Department, Queen's University.
    3. Pejman Bahramian & Glenn Jenkins & Frank Milne, 2020. "A stakeholder analysis of investments for wind power electricity generation in Ontario," Working Paper 1442, Economics Department, Queen's University.
    4. Bahramian, Pejman & Jenkins, Glenn P. & Milne, Frank, 2021. "A stakeholder analysis of investments in wind power electricity generation in Ontario," Energy Economics, Elsevier, vol. 103(C).
    5. Jiang, Zihao & Liu, Zhiying, 2022. "Policies and exploitative and exploratory innovations of the wind power industry in China: The role of technological path dependence," Technological Forecasting and Social Change, Elsevier, vol. 177(C).

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    More about this item

    Keywords

    wind power; thermal displacement; CO2 emissions; stakeholder analysis;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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