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The public promotion of wind energy in Spain from the transaction costs perspective 1986-2007


  • Perez, Yannick
  • Ramos-Real, Francisco Javier


This paper analyzes the success of wind energy in Spain from 1986 to 2007. Certain special characteristics have emerged in Spain that provide credibility to the feed-in tariff (FIT) device to promote this energy source. To explain this success, the analysis will focus on the intrinsic characteristics of FIT using the concepts of the transaction cost theory (TCE). Nevertheless, in this framework, special attention is placed on the role that specific political and institutional factors have played in providing stability to this instrument. Thanks to an early start and an on-going and generous FIT device, wind energy promotion for electricity has become a political success story in Spain. The main implication of this analysis is that this success is mainly due to the trade-off between stability and flexibility in the use of Spanish FIT.

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  • Perez, Yannick & Ramos-Real, Francisco Javier, 2009. "The public promotion of wind energy in Spain from the transaction costs perspective 1986-2007," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(5), pages 1058-1066, June.
  • Handle: RePEc:eee:rensus:v:13:y:2009:i:5:p:1058-1066

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    References listed on IDEAS

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    9. Yannick Perez, 2005. "'Credibility as a trade off' in electricity industries, a first evaluation," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 7(2/3), pages 278-291.
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    Cited by:

    1. Marrero, Gustavo A. & Ramos-Real, Francisco Javier, 2010. "Electricity generation cost in isolated system: The complementarities of natural gas and renewables in the Canary Islands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 2808-2818, December.
    2. van Rijnsoever, Frank J. & van den Berg, Jesse & Koch, Joost & Hekkert, Marko P., 2015. "Smart innovation policy: How network position and project composition affect the diversity of an emerging technology," Research Policy, Elsevier, vol. 44(5), pages 1094-1107.
    3. Zafirakis, D. & Chalvatzis, K. & Kaldellis, J.K., 2013. "“Socially just” support mechanisms for the promotion of renewable energy sources in Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 478-493.
    4. Mundaca, Luis & Mansoz, Mathilde & Neij, Lena & Timilsina, Govinda R, 2013. "Transaction costs of low-carbon technologies and policies : the diverging literature," Policy Research Working Paper Series 6565, The World Bank.
    5. repec:eee:energy:v:138:y:2017:i:c:p:629-646 is not listed on IDEAS
    6. Rious, Vincent & Perez, Yannick, 2014. "Review of supporting scheme for island powersystem storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 754-765.
    7. de la Hoz, Jordi & Boix, Oriol & Martín, Helena & Martins, Blanca & Graells, Moisès, 2010. "Promotion of grid-connected photovoltaic systems in Spain: Performance analysis of the period 1998-2008," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 2547-2563, December.
    8. Walters, Ryan & Walsh, Philip R., 2011. "Examining the financial performance of micro-generation wind projects and the subsidy effect of feed-in tariffs for urban locations in the United Kingdom," Energy Policy, Elsevier, vol. 39(9), pages 5167-5181, September.
    9. Zafirakis, Dimitrios & Chalvatzis, Konstantinos J. & Baiocchi, Giovanni & Daskalakis, George, 2013. "Modeling of financial incentives for investments in energy storage systems that promote the large-scale integration of wind energy," Applied Energy, Elsevier, vol. 105(C), pages 138-154.


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