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Interactions of Policies for Renewable Energy and Climate

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  • Cédric Philibert
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    Abstract

    This paper explores the relationships between climate policy and renewable energy policy instruments. It shows that, even where CO2 emissions are duly priced, specific incentives for supporting the early deployment of renewable energy technologies are justified by the steep learning curves of nascent technologies. This early investment reduces costs in the longer term and makes renewable energy affordable when it needs to be deployed on a very large scale to fully contribute to climate change mitigation and energy security. The paper also reveals other noteworthy interaction effects of climate policy and renewable policy instruments on the wholesale electricity prices in deregulated markets, which open new areas for future research.

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    File URL: http://dx.doi.org/10.1787/5kggc12rmkzq-en
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    Bibliographic Info

    Paper provided by OECD Publishing in its series IEA Energy Papers with number 2011/6.

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    Date of creation: Mar 2011
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    Handle: RePEc:oec:ieaaaa:2011/6-en

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    Cited by:
    1. Zhao, Yong & Tang, Kam Ki & Wang, Li-li, 2013. "Do renewable electricity policies promote renewable electricity generation? Evidence from panel data," Energy Policy, Elsevier, Elsevier, vol. 62(C), pages 887-897.
    2. Krahé, Max & Heidug, Wolf & Ward, John & Smale, Robin, 2013. "From demonstration to deployment: An economic analysis of support policies for carbon capture and storage," Energy Policy, Elsevier, Elsevier, vol. 60(C), pages 753-763.
    3. Simsek, Hayal Ayca & Simsek, Nevzat, 2013. "Recent incentives for renewable energy in Turkey," Energy Policy, Elsevier, Elsevier, vol. 63(C), pages 521-530.
    4. Davide Antonioli & Simone Borghesi & Alessio D'Amato & Marianna Gilli & Massimiliano Mazzanti & Francesco Nicolli, 2014. "Analysing the Interactions of Energy and climate policies in a broad Policy ‘optimality’ framework. The Italian case study," SEEDS Working Papers 2514, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Aug 2014.

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