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http://hdl.handle.net/10419/45880
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| Title: | | Subsidies for renewable energies in the presence of learning effects and market power  |
| Authors: | | Reichenbach, Johanna Requate, Till |
| Issue Date: | | 2011 |
| Series/Report no.: | | Kiel Working Papers 1689 |
| 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. |
| Subjects: | | Feed-in tariffs environmental subsidies learning by doing spill-overs market structure |
| JEL: | | Q42 L13 O38 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Kieler Arbeitspapiere, IfW
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