Enhancing renewable and sustainable energy development based on an options-based policy evaluation framework: Case study of wind energy technology in Taiwan
Global warming and climate change have shifted the focus of industrial development towards low-carbon renewable energy (RE), as evidence by global efforts to develop RE-based sustainable energy policies. However, the generally cost-ineffective nature of RE investments explains continued governmental subsidies and draft assistance measures to encourage related industrial development, reduce research and development (R&D) costs, and increase innovativeness. Besides measures to accelerate supply and reduced demand for energy, sustainable energy policies must enact thoroughly planned legal and regulatory mechanisms. Notable examples of establishing a legal basis for a low-carbon society in Taiwan include the Energy Management Act, Renewable Energy Development Bill, Greenhouse Gas Reduction Act (Draft), and Energy Tax Act (Draft). However, such legislative efforts occasionally conflict or compete with each other, warranting further integration. Additionally, RE technologies are characterized by high R&D costs, long-term planning, and high investment risks. Therefore, based on global trends in wind power development and related policy planning, this study analyzes the feasibility of implementing management strategies in the development process and the correlations between such strategies. Additionally, the achievements, polices, functions, mechanisms, promotion measures, and future plans for related renewable and sustainable energy laws in Taiwan is thoroughly reviewed. An options-based policy evaluation framework is also constructed based on governmental administrative considerations. Moreover, the characteristics of options that lead to unforeseen circumstances during the planning of RE development policies are discussed, allowing us to derive real-time response measures with a decision-making value. Results of this study provide a valuable reference for governmental efforts to evaluate the merits and limitations of related policies concisely, ultimately facilitating the formulation of RE development policies.
Volume (Year): 15 (2011)
Issue (Month): 5 (June)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Siddiqui, Afzal S. & Marnay, Chris & Wiser, Ryan H., 2007. "Real options valuation of US federal renewable energy research, development, demonstration, and deployment," Energy Policy, Elsevier, vol. 35(1), pages 265-279, January.
- Saidur, R. & Islam, M.R. & Rahim, N.A. & Solangi, K.H., 2010. "A review on global wind energy policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 1744-1762, September.
- Kjaerland, Frode, 2007. "A real option analysis of investments in hydropower--The case of Norway," Energy Policy, Elsevier, vol. 35(11), pages 5901-5908, November.
- Gürkan Kumbaroglu & Reinhard Madlener & Mustafa Demirel, 2004.
"A Real Options Evaluation Model for the Diffusion Prospects of New Renewable Power Generation Technologies,"
CEPE Working paper series
04-35, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Kumbaroglu, Gürkan & Madlener, Reinhard & Demirel, Mustafa, 2008. "A real options evaluation model for the diffusion prospects of new renewable power generation technologies," Energy Economics, Elsevier, vol. 30(4), pages 1882-1908, July.
- Agnolucci, Paolo, 2007. "Wind electricity in Denmark: A survey of policies, their effectiveness and factors motivating their introduction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(5), pages 951-963, June.
- Venetsanos, Konstantinos & Angelopoulou, Penelope & Tsoutsos, Theocharis, 2002. "Renewable energy sources project appraisal under uncertainty: the case of wind energy exploitation within a changing energy market environment," Energy Policy, Elsevier, vol. 30(4), pages 293-307, March.
- Davis, Graham A. & Owens, Brandon, 2003. "Optimizing the level of renewable electric R&D expenditures using real options analysis," Energy Policy, Elsevier, vol. 31(15), pages 1589-1608, December.
- Chen, Falin & Lu, Shyi-Min & Chang, Yi-Lin, 2007. "Renewable energy in Taiwan: Its developing status and strategy," Energy, Elsevier, vol. 32(9), pages 1634-1646.
- Liou, Hwa Meei, 2010. "Policies and legislation driving Taiwan's development of renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 1763-1781, September.
- Tsai, Wen-Tien, 2010. "Energy sustainability from analysis of sustainable development indicators: A case study in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 2131-2138, September.
- del Río, Pablo & Unruh, Gregory, 2007. "Overcoming the lock-out of renewable energy technologies in Spain: The cases of wind and solar electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(7), pages 1498-1513, September.
- Liou, Hwa Meei, 2010. "Overview of the photovoltaic technology status and perspective in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(4), pages 1202-1215, May.
- Hwang, Jenn Jiang, 2010. "Promotional policy for renewable energy development in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(3), pages 1079-1087, April.
- Wang, Qiang, 2010. "Effective policies for renewable energy--the example of China's wind power--lessons for China's photovoltaic power," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(2), pages 702-712, February.
- Ku, Se-Ju & Yoo, Seung-Hoon, 2010. "Willingness to pay for renewable energy investment in Korea: A choice experiment study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2196-2201, October.
- Wu, J.H. & Huang, Y.H., 2006. "Renewable energy perspectives and support mechanisms in Taiwan," Renewable Energy, Elsevier, vol. 31(11), pages 1718-1732.
- Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-54, May-June.
- Chen, Falin & Lu, Shyi-Min & Wang, Eric & Tseng, Kuo-Tung, 2010. "Renewable energy in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 2029-2038, September.
- -, 1978. "Normas para preparar trabajos de investigacion," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 20, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
- Chen, Falin & Lu, Shyi-Min & Tseng, Kuo-Tung & Lee, Si-Chen & Wang, Eric, 2010. "Assessment of renewable energy reserves in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 2511-2528, December.
- Myers, Stewart C., 1977. "Determinants of corporate borrowing," Journal of Financial Economics, Elsevier, vol. 5(2), pages 147-175, November.
- Cox, John C. & Ross, Stephen A. & Rubinstein, Mark, 1979. "Option pricing: A simplified approach," Journal of Financial Economics, Elsevier, vol. 7(3), pages 229-263, September.
When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:15:y:2011:i:5:p:2185-2198. 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.