Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries

Jenner, Steffen; Groba, Felix; Indvik, Joe

doi:10.1016/j.enpol.2012.09.046

Cited by 275 publications

(174 citation statements)

References 33 publications

Supporting

Mentioning

138

Contrasting

Unclassified

Order By: Relevance

“…As pointed out by Jenner et al (2013), the choice of cumulative capacity is appropriate if the objective is to examine links between FIT policies and the decision to invest in solar or wind capacity. This is because, unlike generation or supply, cumulative capacity reflects expected (not actual) returns on investment.…”

mentioning

confidence: 99%

Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry

2014

View full text Add to dashboard Cite

This paper aims to contribute to the longstanding technology-push vs. demand-pull debate and to the literature on renewable energy policy assessment. We argue that in addition to the traditional push-pull dichotomy, the drivers of technological change must be differentiated by whether they are exogenous or endogenous to the economic system and must be assessed with respect to their contribution to both the creation and the diffusion of innovation. We apply this perspective to study innovation in the renewable energy (RE) industry in 15 European Union countries from 1990 to 2012. Using different panel data estimators, we find that public R&D investments, policies supporting RE and per capita income all have a positive effect on either innovation creation or diffusion, whereas the variability of policy support has a negative impact on diffusion. However, impacts are heterogeneous and differ depending on the innovation dimension considered. Most importantly, we find that economic growth is a stronger driver of RE diffusion than technology-push or exogenous demand-pull mechanisms, whereas it is relatively ineffective at stimulating innovation creation. The effect of economic growth on RE diffusion exhibits a nonlinear, U-shaped pattern that resonates with the Environmental Kuznets Curve hypothesis. RE penetration remains negligible at low levels of growth whereas it increases sharply only after income per capita has reached a given threshold. This effect has both a direct cause (with increased affluence demand for environmental quality rises) and an indirect cause (with increased affluence expensive RE policies become more affordable and get implemented more extensively). Our findings have implications for policy making. They suggest that for RE diffusion to increase, innovation policies should be carefully balanced. Government action should be directed not only at shielding renewables from competition with fossil fuel technologies, but also at stimulating aggregated demand and economic growth.

show abstract

mentioning

confidence: 99%

Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry

2014

View full text Add to dashboard Cite

show abstract

“…Fiscal and financial incentives such as grants and subsidies [37,39,61] prove less effective than feed-in tariffs [62][63][64][65][66] that also target smaller distributed capacity investments [67]. To address network externalities and reduce private risks regarding complementary assets, public investments are suggested [68,69].…”

Section: Innovation Policymentioning

confidence: 99%

A diverse and resilient financial system for investments in the energy transition

Polzin

Sanders

Taübe

2017

Current Opinion in Environmental Sustainability

View full text Add to dashboard Cite

Diversity makes the financial system more resilient. In addition, there is a diverse investment demand to make the transition to a more sustainable energy system. We need, among others, investment in energy transition, circular resource use, better water management and reducing air pollution. The two are linked. Making the financial system more diverse implies more equity, less debt, more non-bank intermediation and more specialized niche banks giving more relation based credit. This will arguably also increase the flow of funds and resources to innovative, small scale, experimental firms that will drive the sustainability transition. Higher diversity and resilience in financial markets is thus complementary and perhaps even instrumental to engineer the transition to clean energy in the real economy.

show abstract

“…Also Gipe (2006), Mendonça (2007), Mendonça et al (2009), Cory et al (2009 and Timilsina et al (2012) show qualitatively that FITs are a major driver for the development of most solar PV markets. Jenner et al (2013) and Bürer and Wustenhagen (2009) add that investors prefer a FIT over other policy instruments. These qualitative policy evaluation studies generally agree that FITs are important in explaining the development of renewable energy sources in Europe.…”

Section: Introductionmentioning

confidence: 99%

On the Effectiveness of Feed-In Tariffs in the Development of Photovoltaic Solar

Dijkgraaf

Dorp²,

Maasland

2014

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in ABSTRACTGrowing concern for climate change and rising scarcity of fossil fuels prompted governments to stimulate the development of renewables. This paper empirically tests whether feed-in tariff (FIT) policies have been effective in the development of photovoltaic solar (PV), explicitly taking into account structure and consistency of FITs. Panel data estimations are employed for 30 OECD member countries over the period 1990-2011. We find a positive effect of the presence of a FIT and the development of a country's share of PV in the electricity-mix. This effect increases if policies are consistent. Tariff height is the most important characteristic of a FIT, but other characteristics such as cost level, duration of contract and restrictions on capacity levels can also not be neglected if the goal is to increase effectiveness of FITs.

show abstract

Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries

Cited by 275 publications

References 33 publications

Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry

Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry

A diverse and resilient financial system for investments in the energy transition

On the Effectiveness of Feed-In Tariffs in the Development of Photovoltaic Solar

Contact Info

Product

Resources

About