IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/4868.html
   My bibliography  Save this paper

Wind power development : economics and policies

Author

Listed:
  • van Kooten, G. Cornelis
  • Timilsina, Govinda R.

Abstract

This study reviews the prospects of wind power at the global level. Existing studies indicate that the earth's wind energy supply potential significantly exceeds global energy demand. Yet, only 1 percent of the global electricity demand is currently derived from wind power despite 40 percent annual growth in wind generating capacity over the past 25 years. More than 98 percent of total current wind power capacity is installed in the developed countries plus China and India. It has been estimated that wind power could supply 7 to 34 percent of global electricity needs by 2050. However, wind power faces a large number of technical, economic, financial, institutional, market, and other barriers. To overcome these barriers, many countries have employed various policy instruments, including capital subsidies, tax incentives, tradable energy certificates, feed-in tariffs, grid access guarantees and mandatory standards. Besides these policies, climate change mitigation initiatives resulting from the Kyoto Protocol (e.g., CO2-emission reduction targets in developed countries and the Clean Development Mechanism in developing countries) have played a significant role in promoting wind power.

Suggested Citation

  • van Kooten, G. Cornelis & Timilsina, Govinda R., 2009. "Wind power development : economics and policies," Policy Research Working Paper Series 4868, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4868
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/03/18/000158349_20090318101605/Rendered/PDF/WPS4868.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ryan Prescott & G. Cornelis van Kooten & Hui Zhu, 2007. "The Potential for Wind Energy Meeting Electricity Needs on Vancouver Island," Energy & Environment, , vol. 18(6), pages 723-746, November.
    2. Benjamin Sovacool, 2007. "Coal and nuclear technologies: creating a false dichotomy for American energy policy," Policy Sciences, Springer;Society of Policy Sciences, vol. 40(2), pages 101-122, June.
    3. Lund, Henrik, 2005. "Large-scale integration of wind power into different energy systems," Energy, Elsevier, vol. 30(13), pages 2402-2412.
    4. Pitt, Lawrence & van Kooten, G. Cornelis & Love, Murray & Djilali, Ned, 2005. "Utility-scale Wind Power: Impacts of Increased Penetration," Working Papers 37009, University of Victoria, Resource Economics and Policy.
    5. Anderson, Dennis & Winne, Sarah, 2007. "Energy system change and external effects in climate change mitigation," Environment and Development Economics, Cambridge University Press, vol. 12(3), pages 359-378, June.
    6. Anthony D. Owen, 2004. "Environmental Externalities, Market Distortions and the Economics of Renewable Energy Technologies," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 127-158.
    7. Kennedy, Scott, 2005. "Wind power planning: assessing long-term costs and benefits," Energy Policy, Elsevier, vol. 33(13), pages 1661-1675, September.
    8. Maddaloni, Jesse D. & Rowe, Andrew M. & van Kooten, G. Cornelis, 2009. "Wind integration into various generation mixtures," Renewable Energy, Elsevier, vol. 34(3), pages 807-814.
    9. Neij, Lena, 2008. "Cost development of future technologies for power generation--A study based on experience curves and complementary bottom-up assessments," Energy Policy, Elsevier, vol. 36(6), pages 2200-2211, June.
    10. Roth, Ian F. & Ambs, Lawrence L., 2004. "Incorporating externalities into a full cost approach to electric power generation life-cycle costing," Energy, Elsevier, vol. 29(12), pages 2125-2144.
    11. Ayres, Robert U., 2008. "Sustainability economics: Where do we stand?," Ecological Economics, Elsevier, vol. 67(2), pages 281-310, September.
    12. Oswald, James & Raine, Mike & Ashraf-Ball, Hezlin, 2008. "Will British weather provide reliable electricity?," Energy Policy, Elsevier, vol. 36(8), pages 3202-3215, August.
    13. Maddaloni, Jesse D. & Rowe, Andrew M. & van Kooten, G. Cornelis, 2008. "Network constrained wind integration on Vancouver Island," Energy Policy, Elsevier, vol. 36(2), pages 591-602, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stua, Michele, 2013. "Evidence of the clean development mechanism impact on the Chinese electric power system's low-carbon transition," Energy Policy, Elsevier, vol. 62(C), pages 1309-1319.
    2. van Kooten, G. Cornelis, 2009. "Wind Power: The Economic Impact of Intermittency," Working Papers 54370, University of Victoria, Resource Economics and Policy.
    3. G. Cornelis van Kooten & Linda Wong, 2009. "Economic Aspects of Wind Power Generation in Developing Countries," Working Papers 2009-05, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    4. MILE 09, Maria Anna Corvaglia, 2013. "South-South Technology Transfer Addressing Climate Change: The Emerging Role of Developing Countries in the Global Climate Governance," Papers 474, World Trade Institute.
    5. van Kooten, G. Cornelis & Wong, Linda, 2010. "Economics of wind power when national grids are unreliable," Energy Policy, Elsevier, vol. 38(4), pages 1991-1998, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. G. Cornelis van Kooten, 2009. "Wind Power: The Economic Impact of Intermittency," Working Papers 2009-04, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    2. van Kooten, G. Cornelis, 2015. "All you want to know about the Economics of Wind Power," Working Papers 241693, University of Victoria, Resource Economics and Policy.
    3. Timilsina, Govinda R. & Cornelis van Kooten, G. & Narbel, Patrick A., 2013. "Global wind power development: Economics and policies," Energy Policy, Elsevier, vol. 61(C), pages 642-652.
    4. Enevoldsen, Peter & Sovacool, Benjamin K., 2016. "Integrating power systems for remote island energy supply: Lessons from Mykines, Faroe Islands," Renewable Energy, Elsevier, vol. 85(C), pages 642-648.
    5. van Kooten, G. Cornelis & Wong, Linda, 2010. "Economics of wind power when national grids are unreliable," Energy Policy, Elsevier, vol. 38(4), pages 1991-1998, April.
    6. van Kooten, G. Cornelis & Timilsina, Govinda R., 2008. "Wind Power Development: Opportunities and Challenges," Working Papers 45665, University of Victoria, Resource Economics and Policy.
    7. Narbel, Patrick A., 2014. "Rethinking how to support intermittent renewables," Energy, Elsevier, vol. 77(C), pages 414-421.
    8. Scorah, Hugh & Sopinka, Amy & van Kooten, G. Cornelis, 2012. "The economics of storage, transmission and drought: integrating variable wind power into spatially separated electricity grids," Energy Economics, Elsevier, vol. 34(2), pages 536-541.
    9. Moslem Mousavi, Sayed & Bagheri Ghanbarabadi, Morteza & Bagheri Moghadam, Naser, 2012. "The competitiveness of wind power compared to existing methods of electricity generation in Iran," Energy Policy, Elsevier, vol. 42(C), pages 651-656.
    10. Ryan Prescott & G. Cornelis van Kooten & Hui Zhu, 2007. "The Potential for Wind Energy Meeting Electricity Needs on Vancouver Island," Energy & Environment, , vol. 18(6), pages 723-746, November.
    11. Boccard, Nicolas, 2010. "Economic properties of wind power: A European assessment," Energy Policy, Elsevier, vol. 38(7), pages 3232-3244, July.
    12. Zafirakis, D. & Chalvatzis, K. & Kaldellis, J.K., 2013. "“Socially just” support mechanisms for the promotion of renewable energy sources in Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 478-493.
    13. Benitez, Liliana E. & Benitez, Pablo C. & van Kooten, G. Cornelis, 2008. "The economics of wind power with energy storage," Energy Economics, Elsevier, vol. 30(4), pages 1973-1989, July.
    14. Santos-Alamillos, F.J. & Pozo-Vázquez, D. & Ruiz-Arias, J.A. & Lara-Fanego, V. & Tovar-Pescador, J., 2014. "A methodology for evaluating the spatial variability of wind energy resources: Application to assess the potential contribution of wind energy to baseload power," Renewable Energy, Elsevier, vol. 69(C), pages 147-156.
    15. Narbel, Patrick A., 2014. "Rethinking how to support intermittent renewables," Discussion Papers 2014/17, Norwegian School of Economics, Department of Business and Management Science.
    16. Jacqueline Adelowo & Mathias Mier & Christoph Weissbart, 2021. "Taxation of Carbon Emissions and Air Pollution in Intertemporal Optimization Frameworks with Social and Private Discount Rates," ifo Working Paper Series 360, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    17. Schenk, Niels J. & Moll, Henri C. & Potting, José & Benders, René M.J., 2007. "Wind energy, electricity, and hydrogen in the Netherlands," Energy, Elsevier, vol. 32(10), pages 1960-1971.
    18. Sam Aflaki & Serguei Netessine, 2017. "Strategic Investment in Renewable Energy Sources: The Effect of Supply Intermittency," Manufacturing & Service Operations Management, INFORMS, vol. 19(3), pages 489-507, July.
    19. Maddaloni, Jesse D. & Rowe, Andrew M. & van Kooten, G. Cornelis, 2009. "Wind integration into various generation mixtures," Renewable Energy, Elsevier, vol. 34(3), pages 807-814.
    20. Salci, Sener & Jenkins, Glenn, 2016. "An Economic and Stakeholder Analysis for the Design of IPP Contracts for Wind Farms," MPRA Paper 70578, University Library of Munich, Germany.

    More about this item

    Keywords

    Energy Production and Transportation; Carbon Policy and Trading; Windpower; Environment and Energy Efficiency; Energy and Environment;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4868. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.