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Applied General Equilibrium Analysis of Renewable Energy Policies

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  • d’Artis Kancs

Abstract

In this paper we develop an applied general equilibrium framework for assessing socio-economic impacts of alternative renewable energy policies and apply it to the bioenergy sector. The policy scenarios are assessed in a comparative static analysis. The numerical simulation results allow us to assess and compare welfare and distributional impacts of alternative renewable energy policies. Our empirical findings suggest that the bioenergy sector in Poland would benefit most from an indirect tax reduction. According to our simulation results, reducing the fossil energy sectors’ subsidies would be the second best policy option.

Suggested Citation

  • d’Artis Kancs, 2007. "Applied General Equilibrium Analysis of Renewable Energy Policies," EERI Research Paper Series EERI_RP_2007_02, Economics and Econometrics Research Institute (EERI), Brussels.
  • Handle: RePEc:eei:rpaper:eeri_rp_2007_02
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    File URL: http://www.eeri.eu/documents/wp/EERI_RP_2007_02.pdf
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    References listed on IDEAS

    as
    1. d'Artis Kancs & Hans Kremers, 2002. "Assessing Impacts of Alternative Renewable Energy Strategies," EERI Research Paper Series EERI_RP_2002_03, Economics and Econometrics Research Institute (EERI), Brussels.
    2. Oniszk-Poplawska, A. & Rogulska, M. & Wisniewski, G., 2003. "Renewable-energy developments in Poland to 2020," Applied Energy, Elsevier, vol. 76(1-3), pages 101-110, September.
    3. Pietruszko, S.M. & Wisniewski, G. & Chwieduk, D. & Wnuk, R., 1996. "Potential of renewable energies in Poland," Renewable Energy, Elsevier, vol. 9(1), pages 1124-1127.
    4. Bovenberg, A. Lans & Goulder, Lawrence H., 1997. "Costs of Environmentally Motivated Taxes in the Presence of Other Taxes: General Equilibrium Analyses," National Tax Journal, National Tax Association, vol. 50(1), pages 59-88, March.
    5. Bovenberg, A. Lans & Goulder, Lawrence H., 1997. "Costs of Environmentally Motivated Taxes in the Presence of Other Taxes: General Equilibrium Analyses," National Tax Journal, National Tax Association, vol. 50(1), pages 59-88, March.
    6. de Bovenberg, A Lans & Mooij, Ruud A, 1994. "Environmental Levies and Distortionary Taxation," American Economic Review, American Economic Association, vol. 84(4), pages 1085-1089, September.
    7. Roger Diedrich, Thomas W. Petersik, 2001. "Forecasting US renewables in the national energy modelling system," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 15(1/2), pages 141-158.
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    Citations

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    Cited by:

    1. Meyar-Naimi, H. & Vaez-Zadeh, S., 2012. "Sustainable development based energy policy making frameworks, a critical review," Energy Policy, Elsevier, vol. 43(C), pages 351-361.
    2. repec:ner:leuven:urn:hdl:123456789/413548 is not listed on IDEAS
    3. repec:jfr:rwe111:v:7:y:2016:i:1:p:45-51 is not listed on IDEAS
    4. Piroli, Giuseppe & Rajcaniova, Miroslava & Ciaian, Pavel & Kancs, d׳Artis, 2015. "From a rise in B to a fall in C? SVAR analysis of environmental impact of biofuels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 921-930.
    5. 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.
    6. Miroslava Rajcaniova & d'Artis Kancs & Pavel Ciaian, 2014. "Bioenergy and global land-use change," Applied Economics, Taylor & Francis Journals, vol. 46(26), pages 3163-3179, September.
    7. 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.
    8. Ciaian, Pavel & Kancs, d'Artis, 2011. "Food, energy and environment: Is bioenergy the missing link?," Food Policy, Elsevier, vol. 36(5), pages 571-580, October.
    9. Tabatabaei, Sharareh Majdzadeh & Hadian, Ebrahim & Marzban, Hossein & Zibaei, Mansour, 2017. "Economic, welfare and environmental impact of feed-in tariff policy: A case study in Iran," Energy Policy, Elsevier, vol. 102(C), pages 164-169.
    10. 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.
    11. Ciaian, Pavel & Kancs, d'Artis, 2011. "Interdependencies in the energy-bioenergy-food price systems: A cointegration analysis," Resource and Energy Economics, Elsevier, vol. 33(1), pages 326-348, January.
    12. Acaroğlu, Hakan & Baykul, M. Celalettin, 2016. "Economic analysis of flat-plate solar collectors (FPSCs): A solution to the unemployment problem in the city of Eskisehir," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 607-617.
    13. Sacchelli, Sandro & De Meo, Isabella & Paletto, Alessandro, 2013. "Bioenergy production and forest multifunctionality: A trade-off analysis using multiscale GIS model in a case study in Italy," Applied Energy, Elsevier, vol. 104(C), pages 10-20.
    14. 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.

    More about this item

    Keywords

    Applied General Equilibrium; CGE; Renewable Energy; Bioenergy;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Economic Systems - - Socialist Systems 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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