The Development of Renewable Energies and Supply Security: A Trade-Off Analysis
AbstractThis paper analyzes the effects of the green transformation on the German electricity sector with respect to the energy political triangle. It focuses on how the development of renewable energies will affect security of electricity supply. In a cost-benefit analysis, the value of supply security is compared with its costs of provision. More specifically, the benefits of maintaining the present quality of electricity supply are the avoided social damages from electricity outages and are compared with the respective investment costs in the low- and medium-voltage distribution grid. It is shown that the transformation process towards a green and decentralized production structure will be costly for society, even though the costs can be reduced by different measures.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 151.
Date of creation: 2013
Date of revision:
Energy policy; cost-benefit analysis; value of supply security; value of lost load;
Find related papers by JEL classification:
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
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.:
- M. Munasinghe & A. Sanghvi, 1988. "Reliability of Electricity Supply, Outage Costs and Value of Service: An Overview," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 1-18.
- Ashenfelter, Orley & Greenstone, Michael, 2003.
"Using Mandated Speed Limits to Measure the Value of a Statistical Life,"
- Orley Ashenfelter & Michael Greenstone, 2004. "Using Mandated Speed Limits to Measure the Value of a Statistical Life," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages S226-S267, February.
- Ashenfelter, Orley & Greenstone, Michael, 2002. "Using Mandated Speed Limits to Measure the Value of a Statistical Life," IZA Discussion Papers 571, Institute for the Study of Labor (IZA).
- Orley Ashenfelter & Michael Greenstone, 2002. "Using Mandated Speed Limits to Measure the Value of a Statistical Life," NBER Working Papers 9094, National Bureau of Economic Research, Inc.
- Orley Ashenfelter & Michael Greenstone, 2002. "Using Mandated Speed Limits to Measure the Value of a Statistical Life," Working Papers 842, Princeton University, Department of Economics, Industrial Relations Section..
- Sinn, Hans-Werner, . "Das grüne Paradoxon ; Plädoyer für eine illusionsfreie Klimapolitik," Monographs in Economics, University of Munich, Department of Economics, number 19627, September.
- Winzer, Christian, 2012.
"Conceptualizing energy security,"
Elsevier, vol. 46(C), pages 36-48.
- de Nooij, Michiel & Baarsma, Barbara & Bloemhof, Gabriël & Slootweg, Han & Dijk, Harold, 2010. "Development and application of a cost-benefit framework for energy reliability: Using probabilistic methods in network planning and regulation to enhance social welfare: The N-1 rule," Energy Economics, Elsevier, vol. 32(6), pages 1277-1282, November.
- DeSerpa, A C, 1971. "A Theory of the Economics of Time," Economic Journal, Royal Economic Society, vol. 81(324), pages 828-46, December.
- Sebastian Benz, 2012.
"Trading Tasks: A Dynamic Theory of Offshoring,"
Ifo Working Paper Series
Ifo Working Paper No. 150, Ifo Institute for Economic Research at the University of Munich.
- Benz, Sebastian, 2013. "Trading Tasks: A Dynamic Theory of Offshoring," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79816, Verein für Socialpolitik / German Economic Association.
- Leahy, Eimear & Devitt, Conor & Lyons, Seán & Tol, Richard S. J., 2011.
"The Cost of Natural Gas Shortages in Ireland,"
WP397, Economic and Social Research Institute (ESRI).
- Reichl, Johannes & Schmidthaler, Michael & Schneider, Friedrich, 2013. "The value of supply security: The costs of power outages to Austrian households, firms and the public sector," Energy Economics, Elsevier, vol. 36(C), pages 256-261.
- de Nooij, Michiel & Koopmans, Carl & Bijvoet, Carlijn, 2007. "The value of supply security: The costs of power interruptions: Economic input for damage reduction and investment in networks," Energy Economics, Elsevier, vol. 29(2), pages 277-295, March.
- Pablo Serra & Gabriel Fierro, 1996.
"Outage Cost in Chilean Industry,"
Documentos de Trabajo
10, Centro de Economía Aplicada, Universidad de Chile.
- Richard S.J. Tol, 2007. "The Value of Lost Load," Papers WP214, Economic and Social Research Institute (ESRI).
- Herriges, Joseph A. & Caves, Douglas W. & Windle, R. J., 1990.
"Customer Demand for Service Reliability in the Electric Power Industry: A Synthesis of the Outage Cost Literature,"
Staff General Research Papers
10790, Iowa State University, Department of Economics.
- Caves, Douglas W & Herriges, Joseph A & Windle, Robert J, 1990. "Customer Demand for Service Reliability in the Electric Power Industry: A Synthesis of the Outage Cost Literature," Bulletin of Economic Research, Wiley Blackwell, vol. 42(2), pages 79-119, April.
- Rutherford, J.P. & Scharpf, E.W. & Carrington, C.G., 2007. "Linking consumer energy efficiency with security of supply," Energy Policy, Elsevier, vol. 35(5), pages 3025-3035, May.
- Mohan Munasinghe & Mark Gellerson, 1979. "Economic Criteria for Optimizing Power System Reliability Levels," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 353-365, Spring.
- Tishler, Asher, 1993. "Optimal production with uncertain interruptions in the supply of electricity : Estimation of electricity outage costs," European Economic Review, Elsevier, vol. 37(6), pages 1259-1274, August.
- Douglas W. Caves & Joseph A. Herriges & Robert J. Windle, 1992. "The Cost of Electric Power Interruptions in the Industrial Sector: Estimates Derived from Interruptible Service Programs," Land Economics, University of Wisconsin Press, vol. 68(1), pages 49-61.
- Tishler, A. & Newman, J. & Spekterman, I. & Woo, C.K., 2006. "Cost-benefit analysis of reforming Israel's electricity industry," Energy Policy, Elsevier, vol. 34(16), pages 2442-2454, November.
- Sensfuß, Frank & Ragwitz, Mario & Genoese, Massimo, 2008. "The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany," Energy Policy, Elsevier, vol. 36(8), pages 3076-3084, August.
- Wolff, Hendrik, 2012. "Value of Time: Speeding Behavior and Gasoline Prices," IZA Discussion Papers 6788, Institute for the Study of Labor (IZA).
- Sanghvi, Arun P., 1982. "Economic costs of electricity supply interruptions : US and foreign experience," Energy Economics, Elsevier, vol. 4(3), pages 180-198, July.
- Munasinghe, Mohan, 1980. " Costs Incurred by Residential Electricity Consumers Due to Power Failures," Journal of Consumer Research, University of Chicago Press, vol. 6(4), pages 361-69, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If references are entirely missing, you can add them using this form.