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Quel mode de soutien pour les énergies renouvelables électriques ?

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  • Philippe Quirion

    () (CNRS and CIRED)

Abstract

While most developed and emergent countries support renewable energies in the power sector, they do so in a different manner. The three main existing support systems are feed-in-tariffs, feed-in-premiums and tradable renewable quotas. We provide a survey of the literature which compares these support systems. We conclude that tradable renewable quotas suffer from many weaknesses compared to the other two: bad reaction to uncertainty, important risk for funders which increases investment cost, higher transaction costs. Both feed-in-tariffs and premiums have pros and cons and there is little evidence that the transition from the former to the latter, currently occurring in Germany and France, is justified. Finally, beyond the choice between tariff and premium, many concrete choices are at least as important such as the way to finance the support and the differentiation between market segments, necessary to limit the rents but potentially a source of inefficiency.

Suggested Citation

  • Philippe Quirion, 2015. "Quel mode de soutien pour les énergies renouvelables électriques ?," Policy Papers 2015.02, FAERE - French Association of Environmental and Resource Economists.
  • Handle: RePEc:fae:ppaper:2015.02
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    Cited by:

    1. Mignon, Ingrid & Rüdinger, Andreas, 2016. "The impact of systemic factors on the deployment of cooperative projects within renewable electricity production – An international comparison," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 478-488.

    More about this item

    Keywords

    renewable energy; windpower; photovoltaic; subsidy;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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