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Feed-in tariff vs. renewable portfolio standard: An empirical test of their relative effectiveness in promoting wind capacity development


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  • Dong, C.G.
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    This paper examines the relative effectiveness of feed-in tariff (FIT) and Renewable Portfolio Standard (RPS) in promoting wind capacity development using panel data. Conservative estimates suggest that, on average across countries, FIT increases total wind capacity more than RPS by a magnitude of about 1800MW. When using time variant policy indicators, the difference between the two policies increases to nearly 2000MW, roughly 8% of 2009 cumulative capacity in Germany. As for annual wind capacity since 2005, this paper has found no significant difference between FIT and RPS. It is also found that wind energy development responds to high electricity demand and high oil dependence.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 42 (2012)
    Issue (Month): C ()
    Pages: 476-485

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    Handle: RePEc:eee:enepol:v:42:y:2012:i:c:p:476-485

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    Keywords: Wind energy; Feed-in tariff; Renewable portfolio standard;


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    Cited by:
    1. Sánchez-Braza, Antonio & Pablo-Romero, María del P., 2014. "Evaluation of property tax bonus to promote solar thermal systems in Andalusia (Spain)," Energy Policy, Elsevier, vol. 67(C), pages 832-843.
    2. Zhang, Huiming & Li, Lianshui & Zhou, Peng & Hou, Jianmin & Qiu, Yueming, 2014. "Subsidy modes, waste cooking oil and biofuel: Policy effectiveness and sustainable supply chains in China," Energy Policy, Elsevier, vol. 65(C), pages 270-274.
    3. Zhao, Yong & Tang, Kam Ki & Wang, Li-li, 2013. "Do renewable electricity policies promote renewable electricity generation? Evidence from panel data," Energy Policy, Elsevier, vol. 62(C), pages 887-897.
    4. Gireesh Shrimali & Steffen Jenner & Felix Groba & Gabriel Chan & Joe Indvik, 2012. "Have State Renewable Portfolio Standards Really Worked?: Synthesizing Past Policy Assessments," Discussion Papers of DIW Berlin 1258, DIW Berlin, German Institute for Economic Research.
    5. Martin Drechsler & Jürgen Meyerhoff & Cornelia Ohl, 2012. "The effect of feed-in tariffs on the production cost and the landscape externalities of wind power generation in West Saxony, Germany," Discussion Paper Series RECAP15 007, RECAP15, European University Viadrina, Frankfurt (Oder).
    6. Felix Groba & Barbara Breitschopf, 2013. "Impact of Renewable Energy Policy and Use on Innovation: A Literature Review," Discussion Papers of DIW Berlin 1318, DIW Berlin, German Institute for Economic Research.


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