Exploring renewable energy pricing with analytic network process — Comparing a developed and a developing economy
AbstractIncreasing use of renewable sources has a vital importance in mitigating increasing energy demand and global warming. The limited reserves and negative environmental impacts associated with fossil fuel consumption make the renewable energy sources considerable alternatives in case environmental externalities are taken into consideration. Pricing models for renewable energy alternatives are commonly based on the same fundamentals as the fossil fuels, but this approach neglects some of the characteristics that are unique to renewable energy alternatives. In order to develop more accurate pricing models these unique variables which are mostly considered as market externalities need to be integrated in the current forms of pricing models. The originality of this work is its ability to combine social, technical, environmental and economic aspects using analytic network process in order to provide a more holistic point of view on factors impacting renewable energy pricing through a comparison of two case studies. United States (U.S.) and Turkey are the two cases analyzed in this paper. U.S. represents a developed economy whereas Turkey represents a developing economy. It is expected that the results of this work would be helpful for further research in understanding the dynamics behind pricing mechanism of the renewable sources in different environments. For instance, fundamental differences in relative importance of pricing factors between two case countries have been identified as different levels of enforcement through laws and regulations, impact of geographic characteristics on site selection and job opportunities created through new investments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 34 (2012)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/eneco
Analytic network process; Decision analysis; Renewable energy pricing; Pricing components;
Find related papers by JEL classification:
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
- Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Noailly, Joëlle & Batrakova, Svetlana, 2010. "Stimulating energy-efficient innovations in the Dutch building sector: Empirical evidence from patent counts and policy lessons," Energy Policy, Elsevier, vol. 38(12), pages 7803-7817, December.
- Söderholm, Patrik & Pettersson, Maria, 2011. "Offshore wind power policy and planning in Sweden," Energy Policy, Elsevier, vol. 39(2), pages 518-525, February.
- Jansen, Jaap C. & Seebregts, Ad J., 2010. "Long-term energy services security: What is it and how can it be measured and valued?," Energy Policy, Elsevier, vol. 38(4), pages 1654-1664, April.
- Costantini, Valeria & Gracceva, Francesco & Markandya, Anil & Vicini, Giorgio, 2007.
"Security of energy supply: Comparing scenarios from a European perspective,"
Elsevier, vol. 35(1), pages 210-226, January.
- Giorgio Vicini & Francesco Gracceva & Anil Markandya & Valeria Costantini, 2005. "Security of Energy Supply: Comparing Scenarios From a European Perspective," Working Papers 2005.89, Fondazione Eni Enrico Mattei.
- Shimon Awerbuch, 2006. "Portfolio-Based Electricity Generation Planning: Policy Implications For Renewables And Energy Security," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 11(3), pages 693-710, May.
- Jaramillo, O.A. & Borja, M.A. & Huacuz, J.M., 2004. "Using hydropower to complement wind energy: a hybrid system to provide firm power," Renewable Energy, Elsevier, vol. 29(11), pages 1887-1909.
- Nguyen, Thu Lan T. & Gheewala, Shabbir H., 2008. "Fuel ethanol from cane molasses in Thailand: Environmental and cost performance," Energy Policy, Elsevier, vol. 36(5), pages 1589-1599, May.
- Smith-Perera, Aida & García-Melón, Mónica & Poveda-Bautista, Rocío & Pastor-Ferrando, Juan-Pascual, 2010. "A Project Strategic Index proposal for portfolio selection in electrical company based on the Analytic Network Process," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(6), pages 1569-1579, August.
- Toke, David, 2011. "The UK offshore wind power programme: A sea-change in UK energy policy?," Energy Policy, Elsevier, vol. 39(2), pages 526-534, February.
- Kenley, C.R. & Klingler, R.D. & Plowman, C.M. & Soto, R. & Turk, R.J. & Baker, R.L. & Close, S.A. & McDonnell, V.L. & Paul, S.W. & Rabideau, L.R. & Rao, S.S. & Reilly, B.P., 2009. "Job creation due to nuclear power resurgence in the United States," Energy Policy, Elsevier, vol. 37(11), pages 4894-4900, November.
- Moner-Girona, Magda, 2009. "A new tailored scheme for the support of renewable energies in developing countries," Energy Policy, Elsevier, vol. 37(5), pages 2037-2041, May.
- Y. Sarafidis & S. Mirasgedis & E. Georgopoulou & D. P. Lalas, 2002. "Economic Evaluation of Carbon Dioxide Emission Abatement Measures in the Greek Energy Sector," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 45(2), pages 181-198.
- Cowan, Kelly & Daim, Tugrul & Anderson, Tim, 2010. "Exploring the impact of technology development and adoption for sustainable hydroelectric power and storage technologies in the Pacific Northwest United States," Energy, Elsevier, vol. 35(12), pages 4771-4779.
- Kaldellis, J. K. & Vlachou, D. S. & Korbakis, G., 2005. "Techno-economic evaluation of small hydro power plants in Greece: a complete sensitivity analysis," Energy Policy, Elsevier, vol. 33(15), pages 1969-1985, October.
- Afgan, Naim H. & Pilavachi, Petros A. & Carvalho, Maria G., 2007. "Multi-criteria evaluation of natural gas resources," Energy Policy, Elsevier, vol. 35(1), pages 704-713, January.
- Erdogmus, Senol & Kapanoglu, Muzaffer & Koc, Eylem, 2005. "Evaluating high-tech alternatives by using analytic network process with BOCR and multiactors," Evaluation and Program Planning, Elsevier, vol. 28(4), pages 391-399, November.
- Persaud, Shashi & Flynn, Damian & Fox, Brendan, 1999. "Potential for wind generation on the Guyana coastlands," Renewable Energy, Elsevier, vol. 18(2), pages 175-189.
- Bohringer, Christoph & Loschel, Andreas, 2006. "Computable general equilibrium models for sustainability impact assessment: Status quo and prospects," Ecological Economics, Elsevier, vol. 60(1), pages 49-64, November.
- Jharkharia, Sanjay & Shankar, Ravi, 2007. "Selection of logistics service provider: An analytic network process (ANP) approach," Omega, Elsevier, vol. 35(3), pages 274-289, June.
- Ogaji, Stephen & Sampath, Suresh & Singh, Riti & Probert, Douglas, 2002. "Novel approach for improving power-plant availability using advanced engine diagnostics," Applied Energy, Elsevier, vol. 72(1), pages 389-407, May.
- Lipman, Timothy E. & Edwards, Jennifer L. & Kammen, Daniel M., 2004. "Fuel cell system economics: comparing the costs of generating power with stationary and motor vehicle PEM fuel cell systems," Energy Policy, Elsevier, vol. 32(1), pages 101-125, January.
- Wang, Bing & Kocaoglu, Dundar F. & Daim, Tugrul U. & Yang, Jiting, 2010. "A decision model for energy resource selection in China," Energy Policy, Elsevier, vol. 38(11), pages 7130-7141, November.
- Cinar, Didem & Kayakutlu, Gulgun & Daim, Tugrul, 2010. "Development of future energy scenarios with intelligent algorithms: Case of hydro in Turkey," Energy, Elsevier, vol. 35(4), pages 1724-1729.
- Markandya, Anil & Pemberton, Malcolm, 2010. "Energy security, energy modelling and uncertainty," Energy Policy, Elsevier, vol. 38(4), pages 1609-1613, April.
- Ekins, Paul, 2004. "Step changes for decarbonising the energy system: research needs for renewables, energy efficiency and nuclear power," Energy Policy, Elsevier, vol. 32(17), pages 1891-1904, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.