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Renewable energy policy performance in reducing CO2 emissions

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  • Pérez de Arce, Miguel
  • Sauma, Enzo
  • Contreras, Javier

Abstract

The growth of fossil fuel power production and the consequent increase in the level of carbon dioxide (CO2) emissions have set off an alarm signal worldwide. Different policies have been implemented to incentivize the development of renewable energy sources with the goal of reducing CO2 emissions. Notwithstanding the different policies contribute to reduce greenhouse gas emissions through the incentives provided for renewable energy, a relevant question is which of these is the most efficient. However, within the context of oligopolistic competition, the answer is very sensitive to the operation of the system. In particular, significant changes in the results can be observed when considering or ignoring reserve constraints.

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  • Pérez de Arce, Miguel & Sauma, Enzo & Contreras, Javier, 2016. "Renewable energy policy performance in reducing CO2 emissions," Energy Economics, Elsevier, vol. 54(C), pages 272-280.
    • Handle: RePEc:eee:eneeco:v:54:y:2016:i:c:p:272-280
    DOI: 10.1016/j.eneco.2015.11.024
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    More about this item

    Keywords

    Renewable energy; Carbon tax; Feed-in tariff; Premium payment; Quota; Oligopoly; Variability;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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