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The economic value of dispatchable solar electricity: a Post-Paris evaluation

Author

Listed:
  • Karl W. Steininger

    (University of Graz)

  • Wolf D. Grossmann

    (University of Graz)

  • Iris Grossmann

    (Carnegie Mellon University)

Abstract

The UNFCCC Paris Agreement is indicative of the global effort to shift from fossil to renewable energy. Given its abundance and continuous cost decline, photovoltaic electricity is set to play a major role, requiring determination of its economic value in dependence on market share and time horizon. While the literature evaluates short-term perspectives for small market shares and medium-term for significant shares, we develop an approach to determine the costs of ``dispatchable'' solar electricity, where distributed photovoltaic electricity combined with storage and transmission serves full market coverage. This provides a reference for the long-term economic value of solar electricity.

Suggested Citation

  • Karl W. Steininger & Wolf D. Grossmann & Iris Grossmann, 2016. "The economic value of dispatchable solar electricity: a Post-Paris evaluation," Graz Economics Papers 2016-10, University of Graz, Department of Economics.
    • Handle: RePEc:grz:wpaper:2016-10
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    File URL: http://www100.uni-graz.at/vwlwww/forschung/RePEc/wpaper/2016-10.pdf
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    References listed on IDEAS

    as
    1. David McCollum & Volker Krey & Peter Kolp & Yu Nagai & Keywan Riahi, 2014. "Transport electrification: A key element for energy system transformation and climate stabilization," Climatic Change, Springer, vol. 123(3), pages 651-664, April.
    2. Soteris A. Kalogirou, 2015. "Building integration of solar renewable energy systems towards zero or nearly zero energy buildings," International Journal of Low-Carbon Technologies, Oxford University Press, vol. 10(4), pages 379-385.
    3. Grossmann, Wolf D. & Grossmann, Iris & Steininger, Karl W., 2014. "Solar electricity generation across large geographic areas, Part II: A Pan-American energy system based on solar," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 983-993.
    4. Gernot Wagner & Tomas Kåberger & Susanna Olai & Michael Oppenheimer & Katherine Rittenhouse & Thomas Sterner, 2015. "Energy policy: Push renewables to spur carbon pricing," Nature, Nature, vol. 525(7567), pages 27-29, September.
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    Cited by:

    1. Katja Kalkschmied, 2016. "Complementary Institutional Elements and Economic Outcomes," Graz Economics Papers 2016-12, University of Graz, Department of Economics.
    2. Herold, Florian & Kuzmics, Christoph, 2020. "The evolution of taking roles," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 38-63.
    3. Florian Brugger, 2017. "The Effect of Foreign and Domestic Demand on U.S. Treasury Yields," Graz Economics Papers 2017-02, University of Graz, Department of Economics.
    4. Christoph Zwick, 2018. "On the origin of current account deficits in the Euro area periphery: A DSGE perspective," Graz Economics Papers 2018-02, University of Graz, Department of Economics.

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    More about this item

    Keywords

    Renewable Energy; Sustainability; Allocative Efficiency;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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