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Steam-Electric Scale Economies and Construction Lead Times

Rothwell, Geoffrey S. (1986) Steam-Electric Scale Economies and Construction Lead Times. Social Science Working Paper, 627. California Institute of Technology , Pasadena, CA. (Unpublished)

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There was a widespread belief in the 1970s that the construction of coal and nuclear generating units exhibited positive economies of scale. Recent empirical literature has confirmed this belief for coal plants. But these studies have not considered the relationships among cost, plant size, and the building period. This paper derives and estimates a model in which construction cost and lead time are jointly determined. Constant returns to scale are not rejected for nuclear units. While coal units may exhibit positive returns to scale, because larger plants take longer to build, these returns are lower than previously estimated.

Item Type:Report or Paper (Discussion Paper)
Additional Information:In the preparation of this paper I was greatly aided by J. Dubin and N. Rose, by my dissertation committee: R. Gilbert, T. Keeler, J. Quigley, and P. Ruud, and by others, including L. Cohen, K. Eastman, J. Henly, P. Joskow, J. Kerkvliet, R. Noll, J. Pencavel, J. Robinson, R. Rogers, and the Applied Microeconomics Seminar at Stanford University. The errors that remain are my own. Research was funded by grants from the Center for Economic Policy Research at Stanford University and the Environmental Quality Laboratory at the California Institute of Technology.
Group:Social Science Working Papers, Environmental Quality Laboratory
Funding AgencyGrant Number
Stanford Center for Economic Policy ResearchUNSPECIFIED
Environmental Quality LaboratoryUNSPECIFIED
Series Name:Social Science Working Paper
Issue or Number:627
Record Number:CaltechAUTHORS:20170911-164339811
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Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:81333
Deposited By: Jacquelyn Bussone
Deposited On:12 Sep 2017 18:53
Last Modified:03 Oct 2019 18:41

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