Arbeitspapier
Too good to be true? How time-inconsistent renewable energy policies can deter investments
The transition towards low-carbon economies requires massive investments into renewable energies, which are commonly supported through regulatory frameworks. Yet, governments can have incentives - and the ability - to deviate from previously-announced support once those investments have been made, which can deter investments. We analyze a renewable energy regulation game, apply a model of time-inconsistency to renewable energy policy and derive under what conditions governments have incentives to deviate from their commitments. We analyze the effects of various support policies and deployment targets and explain why Spain conducted retrospective changes in the period 2010-2013 whereas Germany stuck to its commitments.
- Sprache
-
Englisch
- Erschienen in
-
Series: DIW Discussion Papers ; No. 1726
- Klassifikation
-
Wirtschaft
Alternative Energy Sources
Environmental Economics: Technological Innovation
Technological Change: Government Policy
Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
- Thema
-
Time-Inconsistency
Regulation
Targets
Renewable Energy Policy
Investments
- Ereignis
-
Geistige Schöpfung
- (wer)
-
May, Nils
Chiappinelli, Olga
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (wo)
-
Berlin
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- May, Nils
- Chiappinelli, Olga
- Deutsches Institut für Wirtschaftsforschung (DIW)
Entstanden
- 2018
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