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Estimating the Amount of a Global Feed-in Tariff for Renewable Electricity

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  • Samantha DeMartino, David Le Blanc

Abstract

We present a simple model to estimate the subsidy cost embedded in a global feed-in tariff (GFIT) to simultaneously stimulate electrification and the take-up of renewable energy sources for electricity generation in developing countries. The GFIT would subsidize developing countries for investments they make in generation capacity for renewable electricity up to a threshold level of electricity consumption per capita. Between 2010 and 2025, countries below this threshold strive to bridge the gap by 2025, when subsidies—based on the difference between the costs of renewable technologies and conventional energy sources-end.

Suggested Citation

  • Samantha DeMartino, David Le Blanc, 2010. "Estimating the Amount of a Global Feed-in Tariff for Renewable Electricity," Working Papers 95, United Nations, Department of Economics and Social Affairs.
  • Handle: RePEc:une:wpaper:95
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    File URL: http://www.un.org/esa/desa/papers/2010/wp95_2010.pdf
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    References listed on IDEAS

    as
    1. Jacobsson, Staffan & Lauber, Volkmar, 2006. "The politics and policy of energy system transformation--explaining the German diffusion of renewable energy technology," Energy Policy, Elsevier, vol. 34(3), pages 256-276, February.
    2. Couture, Toby & Gagnon, Yves, 2010. "An analysis of feed-in tariff remuneration models: Implications for renewable energy investment," Energy Policy, Elsevier, vol. 38(2), pages 955-965, February.
    3. Neuhoff, K., 2009. "International Support for Domestic Climate Policies," Cambridge Working Papers in Economics 0909, Faculty of Economics, University of Cambridge.
    4. Ferioli, F. & Schoots, K. & van der Zwaan, B.C.C., 2009. "Use and limitations of learning curves for energy technology policy: A component-learning hypothesis," Energy Policy, Elsevier, vol. 37(7), pages 2525-2535, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    feed-in tariff; renewable energy; electrification; low-carbon development;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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