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Evaluation of Renewable Energy Policies

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  • d’Artis Kancs

Abstract

The world demand for clean and renewable energy is growing, which is a response to stringent environmental policies aimed at reducing greenhouse gas emissions; price instability on the world energy markets and declining fossil energy resource availability. The main goal of the current study is to evaluate alternative renewable energy policies, which we achieve by quantitatively assessing socio-economic impacts of selected policy instruments. In particular, we perform ex-ante scenario simulations using a general equilibrium bioenergy model. Our empirical results suggest that a fossil energy tax is more efficient than a subsidy. In line with previous studies we found that a subsidy lowers the average cost of production, a tax increases the average cost of production. Our empirical results suggest that bioenergy sector benefits more from an indirect tax reduction than from a removal of fossil energy sectors' subsidies.

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  • d’Artis Kancs, 2004. "Evaluation of Renewable Energy Policies," EERI Research Paper Series EERI_RP_2004_03, Economics and Econometrics Research Institute (EERI), Brussels.
    • Handle: RePEc:eei:rpaper:eeri_rp_2004_03
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    1. Kancs, d'Artis & Wohlgemuth, Norbert, 2008. "Evaluation of renewable energy policies in an integrated economic-energy-environment model," Forest Policy and Economics, Elsevier, vol. 10(3), pages 128-139, January.
    2. Piroli, Giuseppe & Ciaian, Pavel & Kancs, d'Artis, 2012. "Land use change impacts of biofuels: Near-VAR evidence from the US," Ecological Economics, Elsevier, vol. 84(C), pages 98-109.
    3. Chen, Xi & Zhou, Bin & Zhong, Funing, 2010. "Do Consumers Really Care about Genetically Modified (GM) Food Label? What Do We Know? What Else Should We Know?," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(2), pages 32-56.
    4. James Anderson, 2001. "Migration, FDI, and the Margins of Trade," EERI Research Paper Series EERI_RP_2001_05, Economics and Econometrics Research Institute (EERI), Brussels.
    5. Boppana Nagarjuna & Varadi Vijay Kumar, 2010. "Heat waves or Meteor showers: Empirical evidence from the stock markets," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(2), pages 57-74.

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    Keywords

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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