Measuring the Impact of Own and Others’ Experience on Project Costs in the U.S. Wind Generation Industry

John W. Anderson, Gordon Leslie and Frank A. Wolak

No 26114, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We investigate the relationship between accumulated experience completing wind power projects and the cost of installing wind projects in the U.S. from 2001-2015. Our modeling framework disentangles accumulated experience from input price changes, scale economies, and exogenous technical change; and accounts for both firm-specific and industry-wide accumulated experience. We find evidence consistent with cost-reducing benefits from firm-specific experience for that firm’s cost of future wind power projects, but no evidence of industry-wide learning from the experience of other participants in the industry. Further, our experience measure rapidly depreciates across time and distance, suggesting a stable industry trajectory would lower project costs.

JEL-codes: L94 O31 O33 (search for similar items in EconPapers)
Date: 2019-07
New Economics Papers: this item is included in nep-com, nep-ene and nep-ppm
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