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Greening Electricity More Than Necessary: On the Cost Implications of Overlapping Regulation in EU Climate Policy

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  • Christoph Böhringer
  • Knut Einar Rosendahl

Abstract

Without tangible prospects for a global deal on climate protection the EU is under domestic policy pressure to justify stringent unilateral emissions reduction targets. Cost effectiveness of EU-wide emission abatement becomes increasingly important in order to sustain EU leadership in climate policy. We argue that administered EU targets for renewable energies are likely to make emission reduction much more costly than necessary. Therefore, they could rather hinder than promote public support to unilateral climate policy unless a convincing case for additional benefits of renewable energy targets can be put forward.

Suggested Citation

  • Christoph Böhringer & Knut Einar Rosendahl, 2011. "Greening Electricity More Than Necessary: On the Cost Implications of Overlapping Regulation in EU Climate Policy," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 131(3), pages 469-492.
    • Handle: RePEc:aeq:aeqsjb:v131_y2011_i3_q3_p469-492
    DOI: 10.3790/schm.131.3.469
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    Citations

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    Cited by:

    1. Lehmann, Paul & Gawel, Erik, 2013. "Why should support schemes for renewable electricity complement the EU emissions trading scheme?," Energy Policy, Elsevier, vol. 52(C), pages 597-607.
    2. Luigi Aldieri & Jonas Grafström & Kristoffer Sundström & Concetto Paolo Vinci, 2019. "Wind Power and Job Creation," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    3. Christoph Böhringer & Manuela Behrens, 2015. "Interactions of emission caps and renewable electricity support schemes," Journal of Regulatory Economics, Springer, vol. 48(1), pages 74-96, August.
    4. Mulder, Machiel & Zeng, Yuyu, 2018. "Exploring interaction effects of climate policies: A model analysis of the power market," Resource and Energy Economics, Elsevier, vol. 54(C), pages 165-185.
    5. Hecking, Harald, 2015. "CO2 abatement policies in the power sector under an oligopolistic gas market," EWI Working Papers 2014-14, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    6. Pegels, Anna & Lütkenhorst, Wilfried, 2014. "Is Germany׳s energy transition a case of successful green industrial policy? Contrasting wind and solar PV," Energy Policy, Elsevier, vol. 74(C), pages 522-534.
    7. Roach, Martin & Meeus, Leonardo, 2023. "An energy system model to study the impact of combining carbon pricing with direct support for renewable gases," Ecological Economics, Elsevier, vol. 210(C).
    8. Böhringer, Christoph & Keller, Andreas & van der Werf, Edwin, 2013. "Are green hopes too rosy? Employment and welfare impacts of renewable energy promotion," Energy Economics, Elsevier, vol. 36(C), pages 277-285.
    9. Paul Lehmann & Jos Sijm & Erik Gawel & Sebastian Strunz & Unnada Chewpreecha & Jean-Francois Mercure & Hector Pollitt, 2019. "Addressing multiple externalities from electricity generation: a case for EU renewable energy policy beyond 2020?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 255-283, April.
    10. Aldieri, Luigi & Grafström, Jonas & Paolo Vinci, Concetto, 2020. "Job Creation in the Wind Power Sector Through Marshallian and Jacobian Knowledge Spillovers," Ratio Working Papers 340, The Ratio Institute.
    11. Sijm, Jos & Lehmann, Paul & Chewpreecha, Unnada & Gawel, Erik & Mercure, Jean-Francois & Pollitt, Hector & Strunz, Sebastian, 2014. "EU climate and energy policy beyond 2020: Are additional targets and instruments for renewables economically reasonable?," UFZ Discussion Papers 3/2014, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    12. Luigi Aldieri & Jonas Grafström & Concetto Paolo Vinci, 2021. "The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector," Energies, MDPI, vol. 14(14), pages 1-16, July.

    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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