Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/81334 
Year of Publication: 
2012
Series/Report no.: 
IFN Working Paper No. 940
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
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.
Subjects: 
Wind power scrapping
Nordic electricity market
Cox regression model
JEL: 
D22
D92
L94
O13
Q42
Document Type: 
Working Paper

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