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Enhancing renewable and sustainable energy development based on an options-based policy evaluation framework: Case study of wind energy technology in Taiwan

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  • Lee, Shun-Chung
  • Shih, Li-Hsing
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    Abstract

    Global warming and climate change have shifted the focus of industrial development towards low-carbon renewable energy (RE), as evidence by global efforts to develop RE-based sustainable energy policies. However, the generally cost-ineffective nature of RE investments explains continued governmental subsidies and draft assistance measures to encourage related industrial development, reduce research and development (R&D) costs, and increase innovativeness. Besides measures to accelerate supply and reduced demand for energy, sustainable energy policies must enact thoroughly planned legal and regulatory mechanisms. Notable examples of establishing a legal basis for a low-carbon society in Taiwan include the Energy Management Act, Renewable Energy Development Bill, Greenhouse Gas Reduction Act (Draft), and Energy Tax Act (Draft). However, such legislative efforts occasionally conflict or compete with each other, warranting further integration. Additionally, RE technologies are characterized by high R&D costs, long-term planning, and high investment risks. Therefore, based on global trends in wind power development and related policy planning, this study analyzes the feasibility of implementing management strategies in the development process and the correlations between such strategies. Additionally, the achievements, polices, functions, mechanisms, promotion measures, and future plans for related renewable and sustainable energy laws in Taiwan is thoroughly reviewed. An options-based policy evaluation framework is also constructed based on governmental administrative considerations. Moreover, the characteristics of options that lead to unforeseen circumstances during the planning of RE development policies are discussed, allowing us to derive real-time response measures with a decision-making value. Results of this study provide a valuable reference for governmental efforts to evaluate the merits and limitations of related policies concisely, ultimately facilitating the formulation of RE development policies.

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    Bibliographic Info

    Article provided by Elsevier in its journal Renewable and Sustainable Energy Reviews.

    Volume (Year): 15 (2011)
    Issue (Month): 5 (June)
    Pages: 2185-2198

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    Handle: RePEc:eee:rensus:v:15:y:2011:i:5:p:2185-2198

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    Keywords: Low-carbon Renewable energy Sustainable energy Policy evaluation Policy planning;

    References

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    Cited by:
    1. Benjamin McLellan & Qi Zhang & Hooman Farzaneh & N. Agya Utama & Keiichi N. Ishihara, 2012. "Resilience, Sustainability and Risk Management: A Focus on Energy," Challenges, MDPI, Open Access Journal, vol. 3(2), pages 153-182, August.
    2. Lee, Shun-Chung, 2011. "Using real option analysis for highly uncertain technology investments: The case of wind energy technology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4443-4450.

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