EconStor >
European Investment Bank (EIB), Luxembourg >
EIB Papers, European Investment Bank (EIB) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/44879
  
Title:Pros and cons of alternative policies aimed at promoting renewables PDF Logo
Authors:Finon, Dominique
Issue Date:2007
Citation:[Journal:] EIB Papers [ISSN:] 0257-7755 [Volume:] 12 [Year:] 2007 [Issue:] 2 [Pages:] 110-133
Abstract:Following a brief review of the rationale for promoting renewable energy sources, this paper compares alternative policies to promote the production of renewable electricity. The focus is on feed-in tariffs (used in Germany, Spain, and France - for instance) and tradable green certificate (TGC) systems (United Kingdom and Italy, for instance). Considering economic theory and practical experience, the criteria for comparing these two alternatives are: cost-effectiveness, environmental effectiveness, and compatibility with market liberalisation. The paper argues that economic theory does not suggest a clear-cut advantage of one instrument over the other and it emphasises that, in any event, the choice of instrument depends on the relative importance attached to these criteria and on cultural factors such as faith - or lack thereof - in markets to help solve environmental problems. In this context, the paper questions the practical usefulness of a European-wide TGC system.
Document Type:Article
Appears in Collections:EIB Papers, European Investment Bank (EIB)

Files in This Item:
File Description SizeFormat
539674761.pdf489.48 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/44879

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.