Scrapping a Wind Turbine: Policy Changes, Scrapping Incentives and Why Wind Turbines in Good Locations Get Scrapped First

Johannes Mauritzen ()

No 940, Working Paper Series from Research Institute of Industrial Economics

Abstract: The most common reason for scrapping a wind turbine in Denmark is to make room for a newer turbine. The decision to scrap a wind turbine is then highly dependent on an opportunity cost that comes from the interaction of scarce land resources, technological change and changes in subsidy policy. Using a Cox regression model I show that turbines that are located in areas with better wind resources are at a higher risk of being scrapped. Policies put in place in order to encourage the scrapping of older, poorly placed turbines actually have a larger effect on well-placed turbines.

Keywords: Wind power scrapping; Nordic electricity market; Cox regression model (search for similar items in EconPapers)
JEL-codes: D22 D92 L94 O13 Q42 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2012-11-16
New Economics Papers: this item is included in nep-ene
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Scrapping a Wind Turbine: Policy Changes, Scrapping Incentives and Why Wind Turbines in Good Locations Get Scrapped First (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0940

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