John W. Anderson
350 Townsend Street, #210
San Francisco, CA 94107
Institutional Affiliation: OhmConnect
NBER Working Papers and Publications
|July 2019||Measuring the Impact of Own and Others’ Experience on Project Costs in the U.S. Wind Generation Industry|
with Gordon W. Leslie, Frank A. Wolak: w26114
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.