Promotion of Market Access for Renewable Energy in the Nordic Power Markets
AbstractThis study investigates how renewable targets for the Nordic power market might be achieved at the lowest costs. The instruments investigated are fixed Feed-In Tariff, economically sound premium based Feed-In Tariff and shadow-prices for CO 2 emissions. We utilize a Real-Time Price based simulation model in the analysis. We show that even with strong assumptions regarding the Emission Permit Price the targeted level of wind power is not reached without Feed-In Tariffs. Emission Trading produces the lowest total emissions but with the highest total costs. From the studied instruments the most cost-efficient way to reach the targets for wind energy market shares is the premium based Feed-In Tariff. This tariff is also the most cost-efficient way to reduce CO 2 emissions. Copyright Springer Science+Business Media B.V. 2013
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 54 (2013)
Issue (Month): 4 (April)
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Web page: http://www.springerlink.com/link.asp?id=100263
Feed-In Tariff; Real-Time Pricing; Renewable energy; D24; D50; L11; Q28; Q41; Q52; Q53;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
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