Irreversibilities and Indivisibilities of Renewable Energy Adoption Processes in a Monopolistic Market

Roberta Capello, Peter Nijkamp and Gerard Pepping
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Gerard Pepping: Free University

Chapter 5 in Sustainable Cities and Energy Policies, 1999, pp 93-113 from Springer

Abstract: Abstract In this chapter we present a conceptual model of adoption processes under the assumption that renewable energy is supplied in a monopolistic market. As anticipated in Chapter 4, our approach to the adoption processes and to the choice of the optimal moment of adoption is a dynamic approach, since it stresses the way in which adoption costs and revenues change while time passes. Learning processes and cumulative know-how on the old technology influence the values of adoption costs and advantages over time, and may in the long run tum a profitable adoption into a non profitable solution.

Keywords: Cost Curve; Adoption Process; Renewable Energy Technology; Supply Cost; External Supplier (search for similar items in EconPapers)
Date: 1999
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DOI: 10.1007/978-3-662-03833-8_5

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