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The Impacts of Feed-in Tariffs on Innovation: Empirical Evidence from Germany

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  • Asane-Otoo, Emmanuel

Abstract

Feed-in tariffs under the Renewable Energy Sources Act, the so-called Erneuerbare-Energien-Gesetz (EEG), have triggered a massive expansion of electricity from renewable energy sources in Germany over the last decade. The increase in non-competitive renewable power generation though went hand in hand with a substantial rise in electricity prices with consumers paying for the renewable energy subsidies. The high cost burden has provoked an intense public debate on the benefits of renewable energy promotion. In this paper, we assess one popular justification for feed-in tariffs, i.e., induced innovation as a positive spillover externality. Based on regressions with a time-technology fixed effects negative binomial model, we find that innovation impacts of feed-in tariffs under the EEG are insignificant.

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  • Asane-Otoo, Emmanuel, 2014. "The Impacts of Feed-in Tariffs on Innovation: Empirical Evidence from Germany," Conference papers 330221, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330221
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    File URL: https://ageconsearch.umn.edu/record/330221/files/6978_Asane.pdf
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    Cited by:

    1. Consolación Quintana-Rojo & Fernando-Evaristo Callejas-Albiñana & Miguel-Ángel Tarancón & Isabel Martínez-Rodríguez, 2020. "Econometric Studies on the Development of Renewable Energy Sources to Support the European Union 2020–2030 Climate and Energy Framework: A Critical Appraisal," Sustainability, MDPI, vol. 12(12), pages 1-26, June.

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