Zapped: The High Cost of Ontario's Renewable Electricity Subsidies
AbstractOntario’s Green Energy and Green Economy Act subsidizes producers of renewable electricity by paying them far more for their output than the prevailing market price of electricity. Wind power receives a fixed electricity price of 13.5 cents per kilowatt-hour, and solar receives even larger amounts. This subsidy will result in additional costs to the average Ontario household of $310 per year; ostensibly designed to reduce emissions and create jobs, Ontario’s renewable electricity subsidy is an expensive way of meeting these goals. The drag of unnecessarily high electricity costs on the Ontario economy could be reduced if the province did not award any further subsidized contracts to renewable electricity generators.
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Bibliographic InfoPaper provided by C.D. Howe Institute in its series e-briefs with number 117.
Length: 5 pages
Date of creation: May 2011
Date of revision:
Publication status: Published on the C.D. Howe Institute website, May 2011
Economic Growth and Innovation; renewable energy; Province of Ontario; Canada; Feed-In-Tariff (FIT) program; energy subsidies;
Find related papers by JEL classification:
- K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
- K20 - Law and Economics - - Regulation and Business Law - - - General
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-09 (All new papers)
- NEP-ENV-2011-08-09 (Environmental Economics)
- NEP-LAW-2011-08-09 (Law & Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Patrik Söderholm & Ger Klaassen, 2007. "Wind Power in Europe: A Simultaneous Innovation–Diffusion Model," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(2), pages 163-190, February.
- Manuel Frondel & Nolan Ritter & Christoph M. Schmidt & Colin Vance, 2009.
"Economic Impacts from the Promotion of Renewable Energy Technologies - The German Experience,"
Ruhr Economic Papers
0156, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M. & Vance, Colin, 2010. "Economic impacts from the promotion of renewable energy technologies: The German experience," Energy Policy, Elsevier, vol. 38(8), pages 4048-4056, August.
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