Diffusion of irreversible energy technologies under uncertainty [electronic resource].
- Washington, D.C. : United States. Dept. of Energy, 1993.
Oak Ridge, Tenn. : Distributed by the Office of Scientific and Technical Information, U.S. Dept. of Energy.
- Physical Description:
- 14 pages : digital, PDF file
- Additional Creators:
- Argonne National Laboratory
United States. Department of Energy
United States. Department of Energy. Office of Scientific and Technical Information
- 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.
- Published through SciTech Connect.
Sutherland, R.J.; Cacallo, J.D.
- Type of Report and Period Covered Note:
- Topical; 09/01/1993 - 09/01/1993
- Funding Information:
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