The Cost Effectiveness of Using Wind Energy to Generate Electricity and Abate CO2 Emissions

Abstract

This paper also investigates the costs and benefits of wind energy and fossil fuel technologies. To decide whether to meet demand for electricity with wind power, I investigate the cost effectiveness of wind power under a range of emissions prices and take into account the need for back up power. In the long-run, innovative pollution abatement technologies will impact the costs and benefits of various generation types. The installation of large-scale wind power is also expected to create economies of scale and learning-by-doing is expected to drive down the costs of wind technology. I also investigate the transmission costs associated with the injection of large-scale wind power into the transmission grid.