Germany's Solar Cell Promotion: Dark Clouds on the Horizon
This article demonstrates that the large feed-in tariffs currently guaranteed for solar electricity in Germany constitute a subsidization regime that, if extended to 2020, threatens to reach a level comparable to that of German hard coal production, a notoriously outstanding example of misguided political intervention. Yet, as a consequence of the coexistence of the German Renewable Energy Sources Act (EEG) and theEUEmissions Trading Scheme (ETS), the increased use of renewable energy technologies does not imply any additional emission reductions beyond those already achieved by ETS alone. Similarly disappointing is the net employment balance, which is likely to be negative if one takes into account the opportunity cost of this form of solar photovoltaic support. Along the lines of the International Energy Agency (IEA 2007:77), we therefore recommend the immediate and drastic reduction of the magnitude of the feed-in tariffs granted for solar-based electricity. Ultimately, producing electricity on this basis is among the most expensive greenhouse gas abatement options.
|Date of creation:||Mar 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.rwi-essen.de/Email:
More information through EDIRC
|Order Information:||Web: http://www.rwi-essen.de/publikationen/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kluve, Jochen, 2006.
"The Effectiveness of European Active Labor Market Policy,"
IZA Discussion Papers
2018, Institute for the Study of Labor (IZA).
- Jochen Kluve, 2006. "The Effectiveness of European Active Labor Market Policy," RWI Discussion Papers 0037, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
- Manuel Frondel & Rainer Kambeck & Christoph M. Schmidt, 2006.
"Hard Coal Subsidies: A Never-Ending Story?,"
RWI Discussion Papers
0053, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
- Manuel Frondel & Jörg Peters, 2005.
"Biodiesel: A New Oildorado?,"
RWI Discussion Papers
0036, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
- Papineau, Maya, 2006. "An economic perspective on experience curves and dynamic economies in renewable energy technologies," Energy Policy, Elsevier, vol. 34(4), pages 422-432, March.
When requesting a correction, please mention this item's handle: RePEc:rwi:repape:0040. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Weiler)
If references are entirely missing, you can add them using this form.