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

Johannes Mauritzen

The Energy Journal, 2014, vol. 35, issue 2, 157-182

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.

Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:35:y:2014:i:2:p:157-182

DOI: 10.5547/01956574.35.2.8

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