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Evaluation of Renewable Energy Policies

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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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File URL: http://www.eeri.eu/documents/wp/EERI_RP_2004_03.pdf
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Publisher Info
Paper provided by Economics and Econometrics Research Institute (EERI) 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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Related research
Keywords: Emission reduction; renewable energy; policy impact assessment;

Find related papers by JEL classification:
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply (the Commons)
Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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