Learning-by-doing, Learning Spillovers and the Diffusion of Fuel Cell Vehicles

Malte Schwoon ()

No FNU-112, Working Papers from Research unit Sustainability and Global Change, Hamburg University

Abstract: Fuel cell vehicles (FCVs) running on hydrogen do not cause local air pollution. Depending on the energy sources used to produce the hydrogen they may also reduce greenhouse gases in the long-term. Besides problems related to the necessary investments into hydrogen infrastructure, there is a general notion that current fuel cells costs are too high to be competitive with conventional engines, creating an insurmountable barrier to introduction. But given historical evidence from many other technologies it is highly likely that learning by doing (LBD) would lead to substantial cost reductions. In this study we implement potential cost reductions from LBD into an existing agent based model that captures the main dynamics of the introduction of the new technology together with hydrogen infrastructure build up. Assumptions about the learning rate turn out to have a critical impact on the projected diffusion of the FCVs. Moreover, LBD could imply a substantial first mover advantage. We also address the impact of learning spillovers between producers and find that a government might face a policy trade off between fostering diffusion by facilitating learning spillovers and protecting the relative advantage of a national technological leader.

Keywords: Fuel cell vehicles; Hydrogen; Learning by doing; Agent based modeling (search for similar items in EconPapers)
JEL-codes: D11 D21 O33 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2006-06, Revised 2006-06
New Economics Papers: this item is included in nep-ene, nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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