Diffusion of irreversible energy technologies under uncertainty
This paper presents a model of technology diffusion is consistent with characteristics of participants in most energy markets. Whereas the models used most widely for empirical research are based on the assumption that the extended delays in adoption of cost-saving innovations are the result of either lack of knowledge about the new processes or heterogeneity across potential adopters, the model presented in this paper is based on the strategic behavior by firms. The strategic interdependence of the firms` decisions is rooted in spillover effects associated with an inability to exclude others from the learning-by-doing acquired when a firm implements a new technology. The model makes extensive use of recent developments in investment theory as it relates irreversible investments under uncertainty.
- Research Organization:
- Argonne National Lab. (ANL), Argonne, IL (United States)
- Sponsoring Organization:
- USDOE, Washington, DC (United States)
- DOE Contract Number:
- W-31109-ENG-38
- OSTI ID:
- 10188634
- Report Number(s):
- ANL/DIS/RP-80855; ON: DE94001358
- Resource Relation:
- Other Information: PBD: Sep 1993
- Country of Publication:
- United States
- Language:
- English
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