Increasing marginal costs and the efficiency of differentiated feed-in tariffs

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Increasing marginal costs and the efficiency of differentiated feed-in tariffs. / Lancker, Kira; Quaas, Martin F.

I: Energy Economics, Bind 83, 2019, s. 104-118.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Lancker, K & Quaas, MF 2019, 'Increasing marginal costs and the efficiency of differentiated feed-in tariffs', Energy Economics, bind 83, s. 104-118. https://doi.org/10.1016/j.eneco.2019.06.017

APA

Lancker, K., & Quaas, M. F. (2019). Increasing marginal costs and the efficiency of differentiated feed-in tariffs. Energy Economics, 83, 104-118. https://doi.org/10.1016/j.eneco.2019.06.017

Vancouver

Lancker K, Quaas MF. Increasing marginal costs and the efficiency of differentiated feed-in tariffs. Energy Economics. 2019;83:104-118. https://doi.org/10.1016/j.eneco.2019.06.017

Author

Lancker, Kira ; Quaas, Martin F. / Increasing marginal costs and the efficiency of differentiated feed-in tariffs. I: Energy Economics. 2019 ; Bind 83. s. 104-118.

Bibtex

@article{caa73dc89ec0440a83cfad7f44f5b70f,
title = "Increasing marginal costs and the efficiency of differentiated feed-in tariffs",
abstract = "We study optimal subsidies for renewable energy (RE) generation to internalize external benefits from inter-temporal learning-by-doing spillovers, taking into account increasing marginal costs at the industry level due to limited availability of sites suitable for RE. We find that the optimal RE subsidy is differentiated according to productivity and derive a condition on production and spillovers under which less efficient, i.e. more costly, technologies should receive higher support, as common in actual policy-making. We show that such a support of technological diversification is optimal if (i) productive sites are scarce, which limits future utilization of knowledge and if (ii) technologies mature rapidly with little further scope for learning. Prima facie evidence for these elasticities for Germany, Denmark and UK suggests that support for technology diversification is the optimal approach for these countries. (C) 2019 The Authors. Published by Elsevier B.V.",
keywords = "Learning spillovers, Subsidies, Industrial policy, Renewable energy, Feed-in-tariffs, Differentiation, RENEWABLE ENERGY POLICIES, TECHNOLOGY POLICIES, ELECTRICITY PRICES, WIND, RESOURCE, SUPPORT, POWER, TEMPERATURE, TRANSITION, STRATEGIES",
author = "Kira Lancker and Quaas, {Martin F.}",
year = "2019",
doi = "10.1016/j.eneco.2019.06.017",
language = "English",
volume = "83",
pages = "104--118",
journal = "Energy Economics",
issn = "0140-9883",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Increasing marginal costs and the efficiency of differentiated feed-in tariffs

AU - Lancker, Kira

AU - Quaas, Martin F.

PY - 2019

Y1 - 2019

N2 - We study optimal subsidies for renewable energy (RE) generation to internalize external benefits from inter-temporal learning-by-doing spillovers, taking into account increasing marginal costs at the industry level due to limited availability of sites suitable for RE. We find that the optimal RE subsidy is differentiated according to productivity and derive a condition on production and spillovers under which less efficient, i.e. more costly, technologies should receive higher support, as common in actual policy-making. We show that such a support of technological diversification is optimal if (i) productive sites are scarce, which limits future utilization of knowledge and if (ii) technologies mature rapidly with little further scope for learning. Prima facie evidence for these elasticities for Germany, Denmark and UK suggests that support for technology diversification is the optimal approach for these countries. (C) 2019 The Authors. Published by Elsevier B.V.

AB - We study optimal subsidies for renewable energy (RE) generation to internalize external benefits from inter-temporal learning-by-doing spillovers, taking into account increasing marginal costs at the industry level due to limited availability of sites suitable for RE. We find that the optimal RE subsidy is differentiated according to productivity and derive a condition on production and spillovers under which less efficient, i.e. more costly, technologies should receive higher support, as common in actual policy-making. We show that such a support of technological diversification is optimal if (i) productive sites are scarce, which limits future utilization of knowledge and if (ii) technologies mature rapidly with little further scope for learning. Prima facie evidence for these elasticities for Germany, Denmark and UK suggests that support for technology diversification is the optimal approach for these countries. (C) 2019 The Authors. Published by Elsevier B.V.

KW - Learning spillovers

KW - Subsidies

KW - Industrial policy

KW - Renewable energy

KW - Feed-in-tariffs

KW - Differentiation

KW - RENEWABLE ENERGY POLICIES

KW - TECHNOLOGY POLICIES

KW - ELECTRICITY PRICES

KW - WIND

KW - RESOURCE

KW - SUPPORT

KW - POWER

KW - TEMPERATURE

KW - TRANSITION

KW - STRATEGIES

U2 - 10.1016/j.eneco.2019.06.017

DO - 10.1016/j.eneco.2019.06.017

M3 - Journal article

VL - 83

SP - 104

EP - 118

JO - Energy Economics

JF - Energy Economics

SN - 0140-9883

ER -

ID: 348163364