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Market-Based Mechanisms to Promote Renewable Energy in Asia

Author

Listed:
  • Venkatachalam ANBUMOZHI

    (Economic Research Institute for ASEAN and East Asia)

  • Alex BOWEN

    (London School of Economics and Political Sciences, UK)

  • Puthusserikunnel Devasia JOSE

    (Indian Institute of Management Bangalore, India)

Abstract

Market-based instruments such as Renewable Energy Certificate (REC) are increasingly favoured as an alternative to command-and-control legislation to increase the uptake of renewable energy. Focusing on the renewable energy industry and policy situation in Asia, this paper analysed the strengths and weaknesses of market-based approaches in the long-term interest of developing Asia. It found that approaches such as REC are disadvantaged by a lack of both market acceptance and a strong institutional and programme support. To identify gaps in the REC system in India, a comparative analysis with the United Kingdom (UK) model was made. This revealed some fundamental issues around market-based approaches in Asia, underscoring the need for a policy design to address the concerns of buyers and sellers in the market.

Suggested Citation

  • Venkatachalam ANBUMOZHI & Alex BOWEN & Puthusserikunnel Devasia JOSE, 2015. "Market-Based Mechanisms to Promote Renewable Energy in Asia," Working Papers DP-2015-30, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2015-30
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    References listed on IDEAS

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    1. Dulal, Hari Bansha & Shah, Kalim U. & Sapkota, Chandan & Uma, Gengaiah & Kandel, Bibek R., 2013. "Renewable energy diffusion in Asia: Can it happen without government support?," Energy Policy, Elsevier, vol. 59(C), pages 301-311.
    2. Sonneborn, Carrie L., 2004. "Renewable energy and market-based approaches to greenhouse gas reduction--opportunity or obstacle?," Energy Policy, Elsevier, vol. 32(16), pages 1799-1805, November.
    3. Midttun, Atle & Gautesen, Kristian, 2007. "Feed in or certificates, competition or complementarity? Combining a static efficiency and a dynamic innovation perspective on the greening of the energy industry," Energy Policy, Elsevier, vol. 35(3), pages 1419-1422, March.
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    More about this item

    Keywords

    Market-based Mechanisms; Renewable Energy; Renewable Obligation; Regulatory Intervention;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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