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Chapter Green Capitalism? 2017 Entrepreneurship, Policy, and the Geography of Wind Energy |
This study examines the geography of the global wind energy industry before 2000. Between 1980 and 2000, the global generating capacity of wind power grew from 13 megawatts to 17,400 megawatts, but two-thirds of that capacity was in Denmark, Germany, Spain, and the United States. Wind turbine manufacture was clustered in Denmark and the United States through to the late 1980s, when there was a sudden rise of new entrants, especially Germany. The study shows that natural resource endowment is a poor explanatory variable for this geographical skewing. Public policy was a more important factor, although its impact was nuanced. The most important policy development was in California with the adoption of feed-in tariffs, subsidies, and tax credits in the 1980s. However the poor technological capabilities of U.S.-based firms meant that it was Danish and other foreign companies that benefitted most. Subsequently the combination of public policies to grow wind energy and local manufacturer requirements provided a major stimulus for the emergence of local firms in Germany and Spain. U.S. firms were unable to develop internationally competitive products partly because of a rush to capture lucrative contracts dependent on transient public policies and partly because of a failure to develop institutional structures for the industry as a whole.
Keywords: renewable energy; wind power; entrepreneurship; Business and Government; business history; Renewable Energy; Entrepreneurship; Geography; Business and Government Relations; Policy; Business History; Energy Industry; Green Technology Industry; Asia; Europe; United States;
Jones, G. "Entrepreneurship, Policy, and the Geography of Wind Energy." Chap. 12 in Green Capitalism? Business and the Environment in the Twentieth Century, edited by Hartmut Berghoff and Adam Rome, 206–231. Hagley Perspectives on Business and Culture. Philadelphia, PA: University of Pennsylvania Press, 2017.
