Support Schemes for Renewable Energy: An Economic Analysis
We consider leading approaches to the decarbonisation of electricity supply. Price supports through long term contracts, such as feed-in-tariffs have been very effective at eliciting rapid escalation of renewable supply, largely because risks have been transferred away from suppliers and tariffs have been generous. However, countries with the most ambitious programs of this type (Denmark, Germany and Spain) have experienced a noticeable increase in electricity costs. Quota programs, combined with some form of tradable carbon certificates, have typically produced a lesser response with lower impact on consumers. Assured access to grids has also played an important role in expediting growth. Both genres of policy instruments increase global demand for renewable technologies, thereby promoting dynamic efficiency. However, other inefficiencies remain. Feed-in-tariffs place primary onus of technology selection and support on governments and regulators. Limitations on carbon trade reduce effectiveness and increase costs as well. The next generation of instruments would benefit from better locational and temporal price signals.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): Volume 1 (2012)
Issue (Month): Number 2 ()
|Contact details of provider:|| Postal: 28790 Chagrin Blvd Ste 350, Cleveland, OH 44122, USA|
Web page: http://www.iaee.org
More information through EDIRC
|Order Information:||Web: http://www.iaee.org/en/publications/eeepjournal.aspx|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Agnolucci, Paolo, 2007. "Wind electricity in Denmark: A survey of policies, their effectiveness and factors motivating their introduction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(5), pages 951-963, June.
- Zarnikau, Jay, 2011. "Successful renewable energy development in a competitive electricity market: A Texas case study," Energy Policy, Elsevier, vol. 39(7), pages 3906-3913, July.
- Sensfuß, Frank & Ragwitz, Mario & Genoese, Massimo, 2008. "The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany," Energy Policy, Elsevier, vol. 36(8), pages 3076-3084, August.
- Keirstead, James, 2007. "Behavioural responses to photovoltaic systems in the UK domestic sector," Energy Policy, Elsevier, vol. 35(8), pages 4128-4141, August.
- Wiser, Ryan & Barbose, Galen & Holt, Edward, 2011. "Supporting solar power in renewables portfolio standards: Experience from the United States," Energy Policy, Elsevier, vol. 39(7), pages 3894-3905, July.
- Pollitt, M.G., 2010. "UK Renewable Energy Policy Since Privatisation," Cambridge Working Papers in Economics 1007, Faculty of Economics, University of Cambridge.
- Lu, Xi & Tchou, Jeremy & McElroy, Michael B. & Nielsen, Chris P., 2011. "The impact of Production Tax Credits on the profitable production of electricity from wind in the U.S," Energy Policy, Elsevier, vol. 39(7), pages 4207-4214, July.
- Martin Chick, 2007. "Electricity and Energy Policy in Britain, France and the United States since 1945," Books, Edward Elgar Publishing, number 3650.
- Jacobsson, Staffan & Lauber, Volkmar, 2006. "The politics and policy of energy system transformation--explaining the German diffusion of renewable energy technology," Energy Policy, Elsevier, vol. 34(3), pages 256-276, February.
- Sáenz de Miera, Gonzalo & del Rio González, Pablo & Vizcaino, Ignacio, 2008. "Analysing the impact of renewable electricity support schemes on power prices: The case of wind electricity in Spain," Energy Policy, Elsevier, vol. 36(9), pages 3345-3359, September.
- Yatchew, Adonis & Baziliauskas, Andy, 2011. "Ontario feed-in-tariff programs," Energy Policy, Elsevier, vol. 39(7), pages 3885-3893, July.
- Yu, James & Ji, Fuxing & Zhang, Ling & Chen, Yushou, 2009. "An over painted oriental arts: Evaluation of the development of the Chinese renewable energy market using the wind power market as a model," Energy Policy, Elsevier, vol. 37(12), pages 5221-5225, December.
When requesting a correction, please mention this item's handle: RePEc:aen:eeepjl:1_2_a06. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Williams)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.