IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v42y2012icp476-485.html
   My bibliography  Save this article

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

Author

Listed:
  • Dong, C.G.

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.

Suggested Citation

  • Dong, C.G., 2012. "Feed-in tariff vs. renewable portfolio standard: An empirical test of their relative effectiveness in promoting wind capacity development," Energy Policy, Elsevier, vol. 42(C), pages 476-485.
    • Handle: RePEc:eee:enepol:v:42:y:2012:i:c:p:476-485
    DOI: 10.1016/j.enpol.2011.12.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511010068
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Martin L. Weitzman, 1974. "Prices vs. Quantities," Review of Economic Studies, Oxford University Press, vol. 41(4), pages 477-491.
    2. Hamilton, James D., 1996. "This is what happened to the oil price-macroeconomy relationship," Journal of Monetary Economics, Elsevier, vol. 38(2), pages 215-220, October.
    3. Philippe Menanteau & Dominique Finon & Marie-Laure Lamy, 2003. "Prices versus quantities :environmental policies for promoting the development of renewable energy," Post-Print halshs-00480457, HAL.
    4. Jaffe Adam B. & Stavins Robert N., 1995. "Dynamic Incentives of Environmental Regulations: The Effects of Alternative Policy Instruments on Technology Diffusion," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages 43-63, November.
    5. Butler, Lucy & Neuhoff, Karsten, 2008. "Comparison of feed-in tariff, quota and auction mechanisms to support wind power development," Renewable Energy, Elsevier, vol. 33(8), pages 1854-1867.
    6. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2003. "Chapter 11 Technological change and the environment," Handbook of Environmental Economics,in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 11, pages 461-516 Elsevier.
    7. AfDB AfDB, . "Selected Statistics on African Countries 2008," Selected Statistics on African Countries, African Development Bank, number 76 edited by Koua Louis Kouakou.
    8. Mitchell, Catherine & Connor, Peter, 2004. "Renewable energy policy in the UK 1990-2003," Energy Policy, Elsevier, vol. 32(17), pages 1935-1947, November.
    9. Mitchell, C. & Bauknecht, D. & Connor, P.M., 2006. "Effectiveness through risk reduction: a comparison of the renewable obligation in England and Wales and the feed-in system in Germany," Energy Policy, Elsevier, vol. 34(3), pages 297-305, February.
    10. AfDB AfDB, . "African Statistical Journal Vol. 6," African Statistical Journal, African Development Bank, number 54 edited by Koua Louis Kouakou.
    11. Menanteau, Philippe & Finon, Dominique & Lamy, Marie-Laure, 2003. "Prices versus quantities: choosing policies for promoting the development of renewable energy," Energy Policy, Elsevier, vol. 31(8), pages 799-812, June.
    12. Yin, Haitao & Powers, Nicholas, 2010. "Do state renewable portfolio standards promote in-state renewable generation[glottal stop]," Energy Policy, Elsevier, vol. 38(2), pages 1140-1149, February.
    13. Thomas P. Lyon & Haitao Yin, 2010. "Why Do States Adopt Renewable Portfolio Standards?: An Empirical Investigation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 133-158.
    14. AfDB AfDB, . "African Statistical Journal Vol. 1," African Statistical Journal, African Development Bank, number 49 edited by Koua Louis Kouakou.
    15. Fischer, Carolyn & Newell, Richard G., 2008. "Environmental and technology policies for climate mitigation," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 142-162, March.
    16. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
    17. Ucar, Aynur & Balo, Figen, 2009. "Evaluation of wind energy potential and electricity generation at six locations in Turkey," Applied Energy, Elsevier, vol. 86(10), pages 1864-1872, October.
    18. Berry, Trent & Jaccard, Mark, 2001. "The renewable portfolio standard:: design considerations and an implementation survey," Energy Policy, Elsevier, vol. 29(4), pages 263-277, March.
    19. Carley, Sanya, 2009. "State renewable energy electricity policies: An empirical evaluation of effectiveness," Energy Policy, Elsevier, vol. 37(8), pages 3071-3081, August.
    20. AfDB AfDB, . "African Statistical Yearbook 2009," African Statistical Yearbook, African Development Bank, number 58 edited by Koua Louis Kouakou.
    21. AfDB AfDB, . "African Statistical Journal Vol. 7," African Statistical Journal, African Development Bank, number 55 edited by Koua Louis Kouakou.
    22. Wiser, Ryan & Namovicz, Christopher & Gielecki, Mark & Smith, Robert, 2007. "The Experience with Renewable Portfolio Standards in the United States," The Electricity Journal, Elsevier, vol. 20(4), pages 8-20, May.
    23. AfDB AfDB, . "Africa Competitiveness Report 2009," Africa Competitiveness Report, African Development Bank, number 11 edited by Adeleke Oluwole Salami, July-Dece.
    24. Ryan Wiser & Kevin Porter & Robert Grace, 2005. "Evaluating Experience with Renewables Portfolio Standards in the United States," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 10(2), pages 237-263, April.
    25. Langniss, Ole & Wiser, Ryan, 2003. "The renewables portfolio standard in Texas: an early assessment," Energy Policy, Elsevier, vol. 31(6), pages 527-535, May.
    26. AfDB AfDB, . "African Statistical Journal Vol. 2," African Statistical Journal, African Development Bank, number 50 edited by Koua Louis Kouakou.
    27. Bird, Lori & Bolinger, Mark & Gagliano, Troy & Wiser, Ryan & Brown, Matthew & Parsons, Brian, 2005. "Policies and market factors driving wind power development in the United States," Energy Policy, Elsevier, vol. 33(11), pages 1397-1407, July.
    28. AfDB AfDB, . "African Statistical Journal Vol. 8," African Statistical Journal, African Development Bank, number 56 edited by Koua Louis Kouakou.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:42:y:2012:i:c:p:476-485. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.