Geometric scaling and long-run reductions in cost: The case of wind turbines

This paper explores the little understood phenomenon of geometric scaling. After reviewing the relatively small literature on it, this paper applies the concept to wind turbines. It describes the theory and shows the empirical evidence for a link between geometric scaling and long-run cost reductions in the electricity generated from wind turbines. Increases in the scale of wind turbines have reduced the cost of electricity in a number of different ways and it is probably the primary driver of cost reductions in the cost of electricity from wind turbines. This suggests that policies towards wind turbines, and probably other new technologies, should consider the role of geometric scaling.