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Demand pull isntruments and the development of wind power in Europe: A counter-factual analysis

Marc Baudry () and Clément Bonnet ()

Working Papers from Chaire Economie du climat

Abstract: Renewable energy technologies are called to play a crucial role in the reduction of greenhouse gas emissions. Since most of these technologies did not yet reach grid parity, public policies can rely on two types of approach: supply push and demand pull. The latter aims at creating demand for new technologies and at stimulating their diffusion. Nevertheless, due to the complex self-sustained dynamics of diffusion and to spillovers between the countries it is hard to determine whether newly installed capacities are imputable to national support policies and/or to policies implemented by neighbor countries. The paper addresses this problem. A micro-founded model of technology diffusion is developed and calibrated. It captures the influence of demand pull policies on installed capacities for six European countries over the last decade. A counter-factual analysis is carried out to assess the impact of demand pull policies on wind power development by taking into account the interplay between national policies via spillovers.

Keywords: Renewable energy; Technology diffusion; Demand pull instruments. (search for similar items in EconPapers)
Pages: 36 pages
Date: 2016
New Economics Papers: this item is included in nep-ene, nep-ino, nep-reg and nep-tid
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http://www.chaireeconomieduclimat.org/RePEc/cec/wp ... 07-Baudry-Bonnet.pdf First version, 2016 (application/pdf)

Related works:
Working Paper: Demand-pull instruments and the development of wind power in Europe: a counterfactual analysis (2019)
Working Paper: Demand-pull instruments and the development of wind power in Europe: a counterfactual analysis (2018) Downloads
Working Paper: Demand pull instruments and the development of wind power in Europe: A counter-factual analysis (2017) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:cec:wpaper:1607

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