Induced Diffusion of Innovation : A Study on Wind Energy Development in Karnataka

Diffusion of windmill technology is necessary for socio-economic development in the context of acute shortage of energy. This paper attempts to understand the patterns of this diffusion of innovation and its relationship with several independent factors such as number of wind turbines, allotted installed capacity, rotor hub height, wind energy generation rating, and the number of wind firm developers. Methodologies like the augmented Dickey-Fuller test, and the Engle-Granger co-integration and error correction model are used. Empirical results indicate that one Indian state, i.e., Karnataka, has enough potential for wind diffusions with logistic patterns of growth. This potentiality exists because of the co-integration relationship between diffusion of innovation and each of the independent variables with long-run equilibrium adjustments. However, results also indicate that the quality of wind turbines, appropriate sites, and efficiency of wind firm developers should be a matter of great concern. Therefore, this study will be useful to public policy makers for the realization of efficient, reliable, and sustainable energy in the economy