Subsidies for renewable energies in the presence of learning effects and market power

Reichenbach, Johanna and Requate, Till (2012) Subsidies for renewable energies in the presence of learning effects and market power Resource and Energy Economics, 34 (2). pp. 236-254.

Full text not available from this repository.

Abstract

We study the impact of learning by doing, learning spill-overs, and imperfect competition in a model with two types of electricity producers, an oligopolistic sector of polluting fossil-fuel utilities and a competitive fringe of non-polluting generators of electricity from renewable energy sources (RES-E). Furthermore we consider an upstream industry of RES-E equipment producers engaged in learning by doing. We show that a first-best policy requires two instruments, a tax in the fossil-fuel sector and an output subsidy for RES-E equipment producers. We then study second-best-optimal feed-in tariffs that are paid to the generators of RES-E. By means of simulations we calculate the welfare loss of a second-best-optimal feed-in-tariff policy and analyze how market structure impacts on second-best-optimal feed-in tariffs. (C) 2011 Elsevier B.V. All rights reserved.

Document Type: Article
Research affiliation: Kiel University
OceanRep > The Future Ocean - Cluster of Excellence
Kiel University > Kiel Marine Science
Refereed: Yes
ISSN: 0928-7655
Projects: Future Ocean
Date Deposited: 14 May 2014 09:40
Last Modified: 14 May 2014 09:40
URI: http://eprints.uni-kiel.de/id/eprint/24220

Actions (login required)

View Item View Item