Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93473
Authors: 
Böhringer, Christoph
Cuntz, Alexander
Harhoff, Dietmar
Otoo, Emmanuel Asane
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 4680
Abstract: 
Feed-in tariffs under the Renewable Energy Sources Act, the so-called Erneuerbare-Energien-Gesetz (EEG), have triggered a massive expansion of electricity from renewable energy sources in Germany over the last decade. The increase in non-competitive renewable power generation though went hand in hand with a substantial rise in electricity prices with consumers paying for the renewable energy subsidies. The high cost burden has provoked an intense public debate on the benefits of renewable energy promotion. In this paper, we assess one popular justification for feed-in tariffs, i.e., induced innovation as a positive spillover externality. Based on regressions with a time-technology fixed effect negative binomial model, we find that innovation impacts of feed-in tariffs under the EEG are insignificant.
Subjects: 
renewable energy promotion
feed-in tariffs
innovation
negative binomial regression
JEL: 
C23
H23
O38
Document Type: 
Working Paper

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