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Feed-in tariff vs. renewable portfolio standard: An empirical test of their relative effectiveness in promoting wind capacity development

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  • Dong, C.G.
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    Abstract

    This paper examines the relative effectiveness of feed-in tariff (FIT) and Renewable Portfolio Standard (RPS) in promoting wind capacity development using panel data. Conservative estimates suggest that, on average across countries, FIT increases total wind capacity more than RPS by a magnitude of about 1800MW. When using time variant policy indicators, the difference between the two policies increases to nearly 2000MW, roughly 8% of 2009 cumulative capacity in Germany. As for annual wind capacity since 2005, this paper has found no significant difference between FIT and RPS. It is also found that wind energy development responds to high electricity demand and high oil dependence.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511010068
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    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 42 (2012)
    Issue (Month): C ()
    Pages: 476-485

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    Handle: RePEc:eee:enepol:v:42:y:2012:i:c:p:476-485
    DOI: 10.1016/j.enpol.2011.12.014
    Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

    Keywords: Wind energy; Feed-in tariff; Renewable portfolio standard;

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