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On the redistributive effects of Germany's feed-in tariff

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  • Grösche, Peter
  • Schröder, Carsten

Abstract

The present article assesses the redistributive effects of a key element of German climate change policy, the promotion of renewables in the electricity mix through the provision of a feed-in tariff. The tariff shapes the distribution of households' disposable incomes by charging a levy that is proportional to household electricity consumption, and by financial transfers channeled to households feeding green electricity into the grid. Our study builds on representative household survey data, providing information on various socio demographics, household electricity consumption and ownership of solar facilities. The redistributive effects of the feed-in tariff are evaluated by means of various inequality indices. All the inequality measures indicate that Germany's feed-in tariff is mildly regressive.

Suggested Citation

  • Grösche, Peter & Schröder, Carsten, 2011. "On the redistributive effects of Germany's feed-in tariff," Economics Working Papers 2011-07, Christian-Albrechts-University of Kiel, Department of Economics.
  • Handle: RePEc:zbw:cauewp:201107
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    Cited by:

    1. Andor, Mark A. & Frondel, Manuel & Schmidt, Christoph M. & Simora, Michael & Sommer, Stephan, 2015. "Klima- und Energiepolitik in Deutschland: Dissens und Konsens," RWI Materialien 91, RWI - Leibniz-Institut für Wirtschaftsforschung.
    2. Nikodinoska, Dragana & Schröder, Carsten, 2016. "On the emissions–inequality and emissions–welfare trade-offs in energy taxation: Evidence on the German car fuels tax," Resource and Energy Economics, Elsevier, vol. 44(C), pages 206-233.
    3. Pothen, Frank & Tovar Reanos, Miguel Angel, 2018. "The Distribution of Material Footprints in Germany," Hannover Economic Papers (HEP) dp-627, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    4. Nikodinoska, Dragana & Schröder, Carsten, 2015. "On the emissions-inequality trade-off in energy taxation: Evidence on the German car fuel tax," Discussion Papers 2015/6, Free University Berlin, School of Business & Economics.
    5. Verde, Stefano F. & Pazienza, Maria Grazia, 2016. "Energy and climate hand-in-hand: Financing RES-E support with carbon revenues," Energy Policy, Elsevier, vol. 88(C), pages 234-244.
    6. repec:zbw:rwimat:081 is not listed on IDEAS
    7. Schulte, Isabella & Heindl, Peter, 2017. "Price and income elasticities of residential energy demand in Germany," Energy Policy, Elsevier, vol. 102(C), pages 512-528.
    8. Dr. Ulrike Lehr & Dr. Thomas Drosdowski, 2013. "Soziale Verteilungswirkungen der EEG-Umlage," GWS Discussion Paper Series 13-3, GWS - Institute of Economic Structures Research.
    9. Dr. Ulrike Lehr & Dr. Thomas Drosdowski, 2015. "Soziale Verteilungswirkungen der EEG-Umlage unter Berücksichtigung von Einkommensklassen," GWS Discussion Paper Series 15-1, GWS - Institute of Economic Structures Research.
    10. Manuel Frondel & Stephan Sommer, 2014. "Diskussionspapier: Energiekostenbelastung privater Haushalte – Das EEG als sozialpolitische Zeitbombe?," RWI Materialien, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 23, 06.
    11. Gawel, Erik & Korte, Klaas & Tews, Kerstin, 2015. "Energiewende im Wunderland: Mythen zur Sozialverträglichkeit der Förderung erneuerbarer Energien durch das EEG," UFZ Discussion Papers 2/2015, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    12. Pothen, Frank & Tovar Reaños, Miguel Angel, 2018. "The distribution of material footprints in Germany," ZEW Discussion Papers 18-022, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    13. Stephane Hallegatte & Mook Bangalore & Laura Bonzanigo & Marianne Fay & Tamaro Kane & Ulf Narloch & Julie Rozenberg & David Treguer & Adrien Vogt-Schilb, 2016. "Shock Waves," World Bank Publications, The World Bank, number 22787, June.

    More about this item

    Keywords

    Income distribution; redistribution; tax incidence; renewable resources; energy policy;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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