Abstract
This paper brings together the debate on economic impacts of renewable energy (RE) deployment and the discussion on modelling endogenous technological change on the global markets for the different renewable power generation technologies. Economic impacts of RE deployment are still mostly discussed on national level, where different effects have been identified. Recent research for Germany shows positive effects on the macro level and different distributional impacts. High investment in solar photovoltaics (PV) from 2010 to 2012 and induced increases in the RE sur-charge are the main drivers. At the same time, cost reductions for wind and solar PV take place on global markets, with global learning curves explaining the cost reductions very well. This calls for better including the international dimension into the modelling. The complex feedback loops between global cost curves and national policies, which react to global learning with some time lags, are not yet integrated into complex economic models. These models have to capture different RE technologies, different industries, either delivering the RE technologies or strongly depending on electricity prices, which are influenced by national support policies and macroeconomic development. As a first step to better understand the role of international markets, assumptions on RE exports based on global scenarios can be used. Results show the importance of global markets at least for the German RE industries. If the international dimension is taken into account, mainly positive economic impacts of further RE deployment can be observed.
Highlights
Renewable energy (RE) deployment is growing rapidly on a global scale
Economic impacts of renewable power generation technologies (RPGT) deployment are often analyzed on a national level
In addition to the obvious, and in the short term positive investment effect of increased RPGT installation and additional operation and maintenance during its lifetime, economic structures change towards the new technologies and industries such as machinery and electrical machinery, delivering major components for PV and wind turbines
Summary
Renewable energy (RE) deployment is growing rapidly on a global scale. Non-hydro renewable power capacity. (2015) Economic Impacts of Renewable Power Generation Technologies and the Role of Endogenous Technological Change. Deployment, vice versa, leads to cost decreases via scale effects and learning curves capture this interdependence Using this concept it is possible to—at least partly—endogenize technological change more precisely regarding renewable energy technologies in economic models. Economic impacts of renewable power generation technologies (RPGT) deployment are often analyzed on a national level. This paper brings together two strands of research: the debate on economic impacts of renewable energy deployment and the discussion on modelling endogenous technological change. Future research will have to deal with specific technologies, their interaction with the electricity system, global deployment and learning curves, and the role of national support systems, taking the national share of fluctuating renewables into account, i.e. the specific phase of RE deployment and market integration
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