The profitability of electricity generating firms and policies promoting renewable energy
AbstractUsing a cross-country firm-level dataset this study empirically analyses how the implemented renewable electricity promotion systems – Tradable Green Certificates vs. Feed-in-Tariffs – affected the profitability of the electricity production sector in Europe during the 2002–2010 period. In particular, it tests the hypothesis that due to market imperfections, namely because of higher investment risk, higher capital constraints and higher transaction costs, TGC schemes will be associated with excess profits for renewable electricity generating firms. The results somewhat support this hypothesis, showing that electricity generating firms, operating in EU countries that implemented TGC, were more profitable compared to FIT firms.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 40 (2013)
Issue (Month): C ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/eneco
Electricity; EU-ETS; European Union; Feed-in-tariff; Profits; Renewable energy; Tradable green certificates;
Find related papers by JEL classification:
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
- 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
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