Diffusion of Cogeneration in Swiss Industries: Economics,Technical Change,Field of Application,and Framework Conditions

Abstract

In this article we study the economics of the adoption and diffusion of cogeneration (CHP) systems. Based on microeconomic theoretical reasoning, we identify the main variables influencing the decision-making problem of firms that plan to adopt CHP technology, and how the adoption by other firms affects optimal adoption timing. We also consider CHP-related technical change, trends in the industries studied, field of application, and relevant framework conditions with a potential impact on CHP adoption and diffusion. In the descriptive analysis our focus is on industrial CHP systems in Switzerland (>1 MW_e), with particular emphasis on both the pulp and paper and the chemical industries.

Keywords

technology adoption and diffusion cogeneration CHP technical change Switzerland

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