Title: Evaluating the Impact of R&D and Learning-by-Doing on Fossil Energy Technology Cost Reductions: There Can be No Learning if There is No Doing
Publication Number: NETL/DOE-342/020613
Publication Date: 02/2013
Publication Type: Report/Publication
Contact: Katrina Krulla
Program/Technology: Carbon Sequestration
Author: William Babiuch (MRIGlobal) Jeffery A. Withum
Synopsis: Historical data has shown that as new technologies penetrate the market, costs are often reduced with each doubling in capacity because employees learn-by-doing. Learning curves are used by many models to forecast future capital costs for energy technologies including carbon capture. Caution should be taken when using learning curves to predict future capital costs because of the wide variation in learning rates and inability to separate the impacts of R&D. It is important to note that while learning-by-doing can bring costs down once a technology deploys, R&D is still necessary for the technology to become cost competitive.
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