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Cost-Effectiveness and Incidence of Renewable Energy Promotion in Germany

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Listed:
  • Christoph Böhringer

    () (University of Oldenburg)

  • Florian Landis

    (Centre for European Economic Research (ZEW))

  • Miguel Angel Tovar Reaños

    (Centre for European Economic Research (ZEW))

Abstract

Over the last decade Germany has boosted renewable energy in power production by means of massive subsidies. The flip side are very high electricity prices which raises concerns that the transition cost towards a renewable energy system will be mainly borne by poor households. In this paper, we combine computable general equilibrium and microsimulation analysis to investigate the cost-effectiveness and incidence of Germany’s renewable energy promotion. We find that the regressive effects of renewable energy promotion could be attenuated by alternative subsidy financing mechanisms which achieve the same level of electricity generation from renewable energy sources.

Suggested Citation

  • Christoph Böhringer & Florian Landis & Miguel Angel Tovar Reaños, 2016. "Cost-Effectiveness and Incidence of Renewable Energy Promotion in Germany," ZenTra Working Papers in Transnational Studies 66 / 2016, ZenTra - Center for Transnational Studies, revised Oct 2016.
  • Handle: RePEc:zen:wpaper:66
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    Cited by:

    1. Schulte, Isabella & Heindl, Peter, 2017. "Price and income elasticities of residential energy demand in Germany," Energy Policy, Elsevier, vol. 102(C), pages 512-528.

    More about this item

    Keywords

    renewable energy policy; feed-in tariffs; CGE; microsimulation;

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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