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Measuring the impact of own and others' experience on project costs in the U.S. wind generation industry

Author: John W Anderson; Gordon W Leslie; Frank A Wolak; National Bureau of Economic Research,
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2019.
Series: Working paper series (National Bureau of Economic Research), no. 26114.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
We investigate the relationship between accumulated experience completing wind power projects and the cost of installing wind projects in the U.S. from 2001-2015. Our modeling framework disentangles accumulated experience from input price changes, scale economies, and exogenous technical change; and accounts for both firm-specific and industry-wide accumulated experience. We find evidence consistent with  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: John W Anderson; Gordon W Leslie; Frank A Wolak; National Bureau of Economic Research,
OCLC Number: 1111578726
Notes: "July 2019"
Description: 1 online resource (36 pages) : illustrations, map.
Series Title: Working paper series (National Bureau of Economic Research), no. 26114.
Responsibility: John W. Anderson, Gordon W. Leslie, Frank A. Wolak.

Abstract:

We investigate the relationship between accumulated experience completing wind power projects and the cost of installing wind projects in the U.S. from 2001-2015. Our modeling framework disentangles accumulated experience from input price changes, scale economies, and exogenous technical change; and accounts for both firm-specific and industry-wide accumulated experience. We find evidence consistent with cost-reducing benefits from firm-specific experience for that firm's cost of future wind power projects, but no evidence of industry-wide learning from the experience of other participants in the industry. Further, our experience measure rapidly depreciates across time and distance, suggesting a stable industry trajectory would lower project costs.

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