IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v38y2017i1_supplp189-210.html

Economic Impacts of Renewable Energy Promotion in Germany

Author

Listed:
  • Christoph Böhringer
  • Florian Landis
  • Miguel Angel Tovar Reaños

Abstract

ABSTRACT Over the last decade Germany has boosted renewable energy in power production by means of massive subsidies. The flip side are very high electricity prices which raise concerns that the transition cost towards a renewable energy system will be mainly borne by poor households. In this paper, we combine computable general equilibrium and microsimulation analyses to investigate the economic impacts of Germany’s renewable energy promotion. We find that the regressive effects of renewable energy promotion could be attenuated by alternative subsidy financing mechanisms.

Suggested Citation

  • Christoph Böhringer & Florian Landis & Miguel Angel Tovar Reaños, 2017. "Economic Impacts of Renewable Energy Promotion in Germany," The Energy Journal, , vol. 38(1_suppl), pages 189-210, June.
    • Handle: RePEc:sae:enejou:v:38:y:2017:i:1_suppl:p:189-210
    DOI: 10.5547/01956574.38.SI1.cboh
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.38.SI1.cboh
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.38.SI1.cboh?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Steinbuks, Jevgenijs & Narayanan, Badri G., 2015. "Fossil fuel producing economies have greater potential for industrial interfuel substitution," Energy Economics, Elsevier, vol. 47(C), pages 168-177.
    2. Krichene, Noureddine, 2002. "World crude oil and natural gas: a demand and supply model," Energy Economics, Elsevier, vol. 24(6), pages 557-576, November.
    3. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M. & Vance, Colin, 2010. "Economic impacts from the promotion of renewable energy technologies: The German experience," Energy Policy, Elsevier, vol. 38(8), pages 4048-4056, August.
    4. Bohringer, Christoph & Rutherford, Thomas F., 2008. "Combining bottom-up and top-down," Energy Economics, Elsevier, vol. 30(2), pages 574-596, March.
    5. John Creedy & Cath Sleeman, 2006. "The Distributional Effects of Indirect Taxes," Books, Edward Elgar Publishing, number 12558, June.
    6. Rehdanz, Katrin, 2007. "Determinants of residential space heating expenditures in Germany," Energy Economics, Elsevier, vol. 29(2), pages 167-182, March.
    7. repec:aen:eeepjl:2_1_a03 is not listed on IDEAS
    8. Koesler, Simon & Schymura, Michael, 2012. "Substitution elasticities in a CES production framework: An empirical analysis on the basis of non-linear least squares estimations," ZEW Discussion Papers 12-007, ZEW - Leibniz Centre for European Economic Research.
    9. Bohringer, Christoph & Boeters, Stefan & Feil, Michael, 2005. "Taxation and unemployment: an applied general equilibrium approach," Economic Modelling, Elsevier, vol. 22(1), pages 81-108, January.
    10. Thomas F. Rutherford & David G. Tarr, 2014. "Poverty effects of Russia's WTO accession: Modeling “real” households with endogenous productivity effects," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 12, pages 287-306, World Scientific Publishing Co. Pte. Ltd..
    11. Arthur Lewbel, 1989. "Identification and Estimation of Equivalence Scales under Weak Separability," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(2), pages 311-316.
    12. Nichele, Veronique & Robin, Jean-Marc, 1995. "Simulation of indirect tax reforms using pooled micro and macro French data," Journal of Public Economics, Elsevier, vol. 56(2), pages 225-244, February.
    13. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    14. Christoph Böhringer & Knut Rosendahl, 2010. "Green promotes the dirtiest: on the interaction between black and green quotas in energy markets," Journal of Regulatory Economics, Springer, vol. 37(3), pages 316-325, June.
    15. repec:aen:journl:2010v31-01-a05 is not listed on IDEAS
    16. King, Mervyn A., 1983. "Welfare analysis of tax reforms using household data," Journal of Public Economics, Elsevier, vol. 21(2), pages 183-214, July.
    17. Graham, Paul & Thorpe, Sally & Hogan, Lindsay, 1999. "Non-competitive market behaviour in the international coking coal market," Energy Economics, Elsevier, vol. 21(3), pages 195-212, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Desmond Lilao (PhD), 2025. "Evaluating the European Union’s Green Deal Role in Climate Change Mitigation and Sustainability Transitions (2030-2050)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(5), pages 280-290, May.
    2. Pant, Prashant & Belz, Frank-Martin, 2026. "Energy market liberalization and the emergence of new energy ventures in Germany," Energy Policy, Elsevier, vol. 208(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:aen:journl:ej38-si1-bohringer is not listed on IDEAS
    2. Christoph Böhringer & Florian Landis & Miguel Angel Tovar Reaños, 2016. "Cost-Effectiveness and Incidence of Renewable Energy Promotion in Germany," ZenTra Working Papers in Transnational Studies 66 / 2016, ZenTra - Center for Transnational Studies, revised Oct 2016.
    3. Christoph Boehringer & Xaquin Garcia-Muros & Mikel González-Eguino, 2019. "Greener and Fairer: A Progressive Environmental Tax Reform for Spain," Working Papers V-418-19, University of Oldenburg, Department of Economics, revised Jan 2019.
    4. Böhringer, Christoph & García-Muros, Xaquín & González-Eguino, Mikel, 2022. "Who bears the burden of greening electricity?," Energy Economics, Elsevier, vol. 105(C).
    5. Böhringer, Christoph & Keller, Andreas & van der Werf, Edwin, 2013. "Are green hopes too rosy? Employment and welfare impacts of renewable energy promotion," Energy Economics, Elsevier, vol. 36(C), pages 277-285.
    6. Tovar Reaños, Miguel A. & Wölfing, Nikolas M., 2018. "Household energy prices and inequality: Evidence from German microdata based on the EASI demand system," Energy Economics, Elsevier, vol. 70(C), pages 84-97.
    7. Sara Proença, 2013. "The role of renewable energy in Portugal´s decarbonisation strategy – application of the HyBGEM model," EcoMod2013 5647, EcoMod.
    8. Fæhn, Taran & Yonezawa, Hidemichi, 2021. "Emission targets and coalition options for a small, ambitious country: An analysis of welfare costs and distributional impacts for Norway," Energy Economics, Elsevier, vol. 103(C).
    9. Tovar Reaños, Miguel A., 2021. "Floods, flood policies and changes in welfare and inequality: Evidence from Germany," Ecological Economics, Elsevier, vol. 180(C).
    10. Javier García-Enríquez & Cruz A. Echevarría, 2018. "Demand for culture in Spain and the 2012 VAT rise," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(3), pages 469-506, August.
    11. Florian Landis, 2019. "Cost distribution and equity of climate policy in Switzerland," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 155(1), pages 1-28, December.
    12. Böhringer, Christoph & Rivers, Nicholas & Yonezawa, Hidemichi, 2016. "Vertical fiscal externalities and the environment," Journal of Environmental Economics and Management, Elsevier, vol. 77(C), pages 51-74.
    13. Christoph Böhringer & Jared C. Carbone & Thomas F. Rutherford, 2018. "Embodied Carbon Tariffs," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(1), pages 183-210, January.
    14. Bye, Brita & Fæhn, Taran & Rosnes, Orvika, 2018. "Residential energy efficiency policies: Costs, emissions and rebound effects," Energy, Elsevier, vol. 143(C), pages 191-201.
    15. Böhringer, Christoph & Keller, Andreas & Bortolamedi, Markus & Rahmeier Seyffarth, Anelise, 2016. "Good things do not always come in threes: On the excess cost of overlapping regulation in EU climate policy," Energy Policy, Elsevier, vol. 94(C), pages 502-508.
    16. Tovar Reaños, Miguel A. & Lynch, Muireann Á., 2022. "Measuring carbon tax incidence using a fully flexible demand system. Vertical and horizontal effects using Irish data," Energy Policy, Elsevier, vol. 160(C).
    17. Böhringer, Christoph & Landis, Florian & Tovar, Miguel, 2022. "The Incidence of Carbon Pricing: From Input-Output via Microsimulation to General Equilibrium," VfS Annual Conference 2022 (Basel): Big Data in Economics 264067, Verein für Socialpolitik / German Economic Association.
    18. Christoph Böhringer & Carsten Helm, 2026. "The Impact of Sector Coupling on Climate Policy Regulations," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 13(1), pages 115-153.
    19. Brita Bye & Taran Fæhn & Orvika Rosnes, 2015. "Residental energy efficiency and European carbon policies A CGE-analysis with bottom-up information on energy efficiency technologies," Discussion Papers 817, Statistics Norway, Research Department.
    20. Christoph Böhringer & Carsten Helm, 2023. "The Reverse Waterbed Effect of Sector Coupling — Unilateral Climate Policies and Multilateral Emissions Trading," CESifo Working Paper Series 10362, CESifo.
    21. García-Muros, Xaquín & Morris, Jennifer & Paltsev, Sergey, 2022. "Toward a just energy transition: A distributional analysis of low-carbon policies in the USA," Energy Economics, Elsevier, vol. 105(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:sae:enejou:v:38:y:2017:i:1_suppl:p:189-210. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.