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Evaluation of Renewable Energy Policies

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  • d’Artis Kancs

Abstract

The world demand for clean and renewable energy is growing, which is a response to stringent environmental policies aimed at reducing greenhouse gas emissions; price instability on the world energy markets and declining fossil energy resource availability. The main goal of the current study is to evaluate alternative renewable energy policies, which we achieve by quantitatively assessing socio-economic impacts of selected policy instruments. In particular, we perform ex-ante scenario simulations using a general equilibrium bioenergy model. Our empirical results suggest that a fossil energy tax is more efficient than a subsidy. In line with previous studies we found that a subsidy lowers the average cost of production, a tax increases the average cost of production. Our empirical results suggest that bioenergy sector benefits more from an indirect tax reduction than from a removal of fossil energy sectors' subsidies.

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Bibliographic Info

Paper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2004_03.

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Length: 27 pages
Date of creation: Mar 2004
Date of revision:
Handle: RePEc:eei:rpaper:eeri_rp_2004_03

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Keywords: Emission reduction; renewable energy; policy impact assessment;

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Cited by:
  1. Boppana Nagarjuna & Varadi Vijay Kumar, 2010. "Heat waves or Meteor showers: Empirical evidence from the stock markets," Journal of Economics and Econometrics, Economics and Econometrics Research Institute (EERI), Brussels, Economics and Econometrics Research Institute (EERI), Brussels, vol. 53(2), pages 57-74.
  2. Chen, Xi & Zhou, Bin & Zhong, Funing, 2010. "Do Consumers Really Care about Genetically Modified (GM) Food Label? What Do We Know? What Else Should We Know?," Journal of Economics and Econometrics, Economics and Econometrics Research Institute (EERI), Brussels, Economics and Econometrics Research Institute (EERI), Brussels, vol. 53(2), pages 32-56.
  3. James Anderson, 2001. "Migration, FDI, and the Margins of Trade," EERI Research Paper Series, Economics and Econometrics Research Institute (EERI), Brussels EERI_RP_2001_05, Economics and Econometrics Research Institute (EERI), Brussels.
  4. Kancs, d'Artis & Wohlgemuth, Norbert, 2008. "Evaluation of renewable energy policies in an integrated economic-energy-environment model," Forest Policy and Economics, Elsevier, Elsevier, vol. 10(3), pages 128-139, January.

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