Demand pull instruments 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 (GHG) emissions. Since most of these technologies did not yet reach grid parity, public policies can rely on two types of approach to stimulate innovation: 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 wind power 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: 38 pages
Date: 2017
New Economics Papers: this item is included in nep-dcm, nep-ene, nep-eur, nep-ino, nep-reg and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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http://www.chaireeconomieduclimat.org/RePEc/cec/wp ... 05-Baudry-Bonnet.pdf First version, 2017 (application/pdf)

Related works:
Working Paper: Demand-pull instruments and the development of wind power in Europe: a counterfactual analysis (2018)
Working Paper: Demand-pull instruments and the development of wind power in Europe: a counterfactual analysis (2018)
Working Paper: Demand pull isntruments and the development of wind power in Europe: A counter-factual analysis (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:cec:wpaper:1705

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