Can technology-specific deployment policies be cost-effective? The case of renewable energy support schemes

Abstract: While there is relatively limited disagreement on the general need for supporting the deployment of renewable energy sources for electricity generation (RES-E), there are diverging views on whether the granted support levels should be technology-neutral or technology-specific. In this paper we question the frequently stressed argument that technology-neutral schemes will promote RES-E deployment cost-effectively. A simple partial equilibrium model of the electricity sector with one representative investor is developed to illustrate how the cost-effective support levels to different RES-E technologies will be influenced when selected market failures are introduced. We address market failures associated with technological development, long-term risk taking, path dependencies as well as various external costs, all of which drive a wedge between the private and the social costs of RES-E deployment. Based on these analytical findings and a review of empirical literature, we conclude tha

Object Details

• Location: Deutsche Nationalbibliothek Frankfurt am Main
• Extent: Online-Ressource, 27 S.
• Language: Englisch
• Notes: Veröffentlichungsversion

References and Relationships

• Bibliographic citation: UFZ Discussion Papers ; Bd. 1/2016

Classification and Topics

• Classification: Natürliche Ressourcen, Energie und Umwelt

Contributors, Places and Time

• Event: Veröffentlichung
• (where): Leipzig
• (when): 2016
• Creator: Lehmann, Paul ; Söderholm, Patrik
• Contributor: Helmholtz-Zentrum für Umweltforschung - UFZ

Further information

• URN: urn:nbn:de:0168-ssoar-46488-2
• Rights: Open Access; Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
• Last update: 25.03.2025, 1:47 PM CET