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Design and Performance of Policy Instruments to Promote the Development of Renewable Energy : Emerging Experience in Selected Developing Countries

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  • Gabriela Elizondo Azuela
  • Luiz Augusto Barroso

Abstract

This report summarizes the results of a recent review of the emerging experience with the design and implementation of policy instruments to promote the development of renewable energy (RE) in a sample of six representative developing countries and transition economies ('developing countries') (World Bank 2010). The review focused mainly on price- and quantity-setting policies, but it also covered fiscal and financial incentives, as well as relevant market facilitation measures. The lessons learned were taken from the rapidly growing literature and reports that analyze and discuss RE policy instruments in the context of different types of power market structures. The analysis considered all types of grid-connected RE options except large hydropower: wind (on-shore and off-shore), solar (photovoltaic and concentrated solar power), small hydropower (SHP) (with capacities below 30 megawatts), biomass, bioelectricity (cogeneration), landfill gas, and geothermal. The six countries selected for the review included Brazil, India, Indonesia, Nicaragua, Sri Lanka, and Turkey.

Suggested Citation

  • Gabriela Elizondo Azuela & Luiz Augusto Barroso, 2012. "Design and Performance of Policy Instruments to Promote the Development of Renewable Energy : Emerging Experience in Selected Developing Countries," World Bank Publications - Books, The World Bank Group, number 9379.
    • Handle: RePEc:wbk:wbpubs:9379
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    References listed on IDEAS

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    1. Fischer, Carolyn & Preonas, Louis, 2010. "Combining Policies for Renewable Energy: Is the Whole Less Than the Sum of Its Parts?," International Review of Environmental and Resource Economics, now publishers, vol. 4(1), pages 51-92, June.
    2. World Bank, 2010. "World Development Report 2010," World Bank Publications - Books, The World Bank Group, number 4387, April.
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    Cited by:

    1. Baumber, Alex, 2017. "Enhancing ecosystem services through targeted bioenergy support policies," Ecosystem Services, Elsevier, vol. 26(PA), pages 98-110.
    2. Mihail Busu & Gabriel Staicu & Mihai Gheorghe & Enrico Prinz & Luis Miguel Fonseca, 2024. "Analysing the Effects of the Business Cycle on Renewable Energy Consumption and Sustainable Development: Evidence from EU Countries," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 26(Special 1), pages 1048-1048, November.
    3. Michael Howlett & Ishani Mukherjee, 2014. "Policy Design and Non-Design: Towards a Spectrum of Policy Formulation Types," Politics and Governance, Cogitatio Press, vol. 2(2), pages 57-71.
    4. Zhao, Yong & Tang, Kam Ki & Wang, Li-li, 2013. "Do renewable electricity policies promote renewable electricity generation? Evidence from panel data," Energy Policy, Elsevier, vol. 62(C), pages 887-897.
    5. Kozlova, Mariia & Collan, Mikael, 2016. "Modeling the effects of the new Russian capacity mechanism on renewable energy investments," Energy Policy, Elsevier, vol. 95(C), pages 350-360.
    6. Stephen Howes & Paul Wyrwoll, 2012. "Climate Change Mitigation and Green Growth in Developing Asia," ADBI Working Papers 369, Asian Development Bank Institute.
    7. Michael Howlett & Ishani Mukherjee, 2014. "Policy Design and Non-Design: Towards a Spectrum of Policy Formulation Types," Politics and Governance, Cogitatio Press, vol. 2(2), pages 57-71.
    8. Buckman, Greg & Sibley, Jon & Bourne, Richard, 2014. "The large-scale solar feed-in tariff reverse auction in the Australian Capital Territory, Australia," Energy Policy, Elsevier, vol. 72(C), pages 14-22.
    9. Sanya Carley & Elizabeth Baldwin & Lauren M. MacLean & Jennifer N. Brass, 2017. "Global Expansion of Renewable Energy Generation: An Analysis of Policy Instruments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 397-440, October.
    10. Shin, Woojae & Lee, Yeim & Yu, Yejin & Song, Han Ho, 2025. "Optimization of emission-based sliding-premium incentive policy for clean energy market: A case study of clean hydrogen producers and importers," Applied Energy, Elsevier, vol. 390(C).
    11. World Bank Group, 2014. "RISE - Readiness for Investment in Sustainable Energy : A Tool for Policy Makers," World Bank Publications - Reports 20598, The World Bank Group.
    12. Kozlova, Mariia & Fleten, Stein-Erik & Hagspiel, Verena, 2019. "Investment timing and capacity choice under rate-of-return regulation for renewable energy support," Energy, Elsevier, vol. 174(C), pages 591-601.
    13. Enrico Maria de Angelis & Marina Di Giacomo & Davide Vannoni, 2019. "Climate Change and Economic Growth: The Role of Environmental Policy Stringency," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    14. Elizondo Azuela, Gabriela & Barroso, Luiz & Khanna, Ashish & Wang, Xiaodong & Wu, Yun & Cunha, Gabriel, 2014. "Performance of renewable energy auctions : experience in Brazil, China and India," Policy Research Working Paper Series 7062, The World Bank.
    15. Viana, Alexandre G. & Ramos, Dorel Soares, 2018. "Outcomes from the first large-scale solar PV auction in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 219-228.
    16. Contreras, Javier & Rodríguez, Yeny E., 2016. "Incentives for wind power investment in Colombia," Renewable Energy, Elsevier, vol. 87(P1), pages 279-288.
    17. Stephen Howes & Paul Wyrwoll, 2012. "Climate Change Mitigation and Green Growth in Developing Asia," Working Papers id:5059, eSocialSciences.

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