The Effect of Oil Price Fluctuations on Wind Power Capacity in Developing Countries, Based on Technological Learning and Economies of Scale

Abstract

The paper investigates the effects of oil price fluctuations on the installed capacity of wind energy in developing countries in comparison with the impact of economies of scale and technical learning. To this end, we used rolling regression analysis and data from 2003 to 2015 to calculate annual technical learning rates. Using the panel data regression and autoregressive model based on panel data we analyzed the effect of oil price fluctuations on wind energy installed capacity as the most advanced renewable energy in developing countries. The results show that oil price changes in the long run have a positive but limited impact on the development of renewable energy in developing countries. Oil price shocks, although in the short term and driven by the incentive of developing countries to transfer higher-tech technologies to renewable energy can not in the long term alone, guarantee the development of renewable energy in these countries

Keywords

• renewable energy
• technological learning
• economies of scale
• oil price shock