Supplementing an emissions tax by a feed-in tariff for renewable electricity to address learning spillovers

Energy Policy

Volumn 61, Issue , 2013, Pages 635-641

  Lehmann, Paul ^a  

^a HELMHOLTZ CENTRE FOR ENVIRONMENTAL RESEARCH UFZ   (Germany)

Author keywords

Emissions tax; Feed in tariff; Technological change

Indexed keywords

EMISSIONS TAX; FEED-IN TARIFF; INSTITUTIONAL CONSTRAINTS; RENEWABLE ELECTRICITY; RENEWABLE ENERGY TECHNOLOGIES; RESTRICTIVE CONDITIONS; TECHNOLOGICAL CHANGE; TECHNOLOGICAL DEVELOPMENT;

CLIMATE CHANGE; ELECTRICITY; OPTIMIZATION; RENEWABLE ENERGY RESOURCES;

TAXATION;

ALTERNATIVE ENERGY; ELECTRICITY; EMISSION CONTROL; ENVIRONMENTAL POLICY; POLLUTION TAX; RENEWABLE RESOURCE; SPILLOVER EFFECT; TECHNOLOGICAL CHANGE; TECHNOLOGICAL DEVELOPMENT;

EID: 84881665832     PISSN: 03014215     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.enpol.2013.06.072     Document Type: Article

References (69)

1. Abrell, J., Weigt, H., 2008. The Interaction of Emissions Trading and Renewable Energy Promotion, Discussion Paper. Dresden University of Technology, Dresden.
2. Acemoglu D., Aghion P., Bursztyn L., Hemous D. The environment and directed technical change. The American Economic Review 2012, 102:131-166.
3. Amundsen E.S., Mortensen J.B. The Danish green certificate market: some simple analytical results. Energy Economics 2001, 23:489-509.
4. Argote L., Epple D. Learning curves in manufacturing. Science 1990, 247:920-924.
5. Arrow K.J. The economic implications of learning by doing. Review of Economic Studies 1962, 29:155-173.
6. Bennear L.S., Stavins R.N. Second-best theory and the use of multiple policy instruments. Environmental & Resource Economics 2007, 37:111-129.
7. Bläsi A., Requate T. Feed-in-tariffs for electricity from renewable energy resources to move down the learning curve?. Public Finance and Management 2010, 10.
8. BMU, 2011. Renewable energy sources 2010. Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), Berlin.
9. Böhringer C., Rosendahl K.E. Green promotes the dirtiest: on the interaction between black and green quotas in energy markets. Journal of Regulatory Economics 2010, 37:316-325.
10. Bosetti V., Carraro C., Massetti E., Tavoni M. International energy R&D spillovers next term and the economics of greenhouse gas atmospheric stabilization. Energy Economics 2008, 30:2912-2929.
11. Braun, F.G., Schmidt-Ehmcke, J., Zloczysti, P., 2010. Innovative Activity in Wind and Solar Technology: Empirical Evidence on Knowledge Spillovers Using Patent Data, Discussion Paper. Deutsches Institut für Wirtschaftsforschung (DIW), Berlin.
12. Browning E.K. The marginal cost of public funds. Journal of Political Economy 1976, 84:283-298.
13. Browning E.K. On the marginal welfare cost of taxation. The American Economic Review 1987, 77:11-23.
14. Bye B., Faehn T., Grünfeld L.A. Growth and innovation policy in a small, open economy: should you stimulate domestic R&D or exports?. The B.E. Journal of Economic Analysis and Policy 2011, 11. Article 42.
15. Castelnuovo E., Galeotti M., Gambarelli G., Vergalli S. Learning-by-doing vs. learning by researching in a model of climate change policy analysis. Ecological Economics 2005, 54:261-276.
16. Couture T., Gagnon Y. An analysis of feed-in tariff remuneration models: implications for renewable energy investment. Energy Policy 2010, 38:955-965.
17. Downing T.E., Anthoff D., Butterfield R., Ceronsky M., Grubb M., Guo J., Hepburn C., Hope C., Hunt A., Li A., Markandya A., Moss S., Nyong A., Tol R.S.J., Watkiss P. Social cost of carbon: a closer look at uncertainty 2005, Stockholm Environment Institute, Oxford, UK, Final report.
18. Edenhofer O., Bauer N., Kriegler E. The impact of technological change on climate protection and welfare: Insights from the model MIND. Ecological Economics 2005, 54:277-292.
19. Ek K., Söderholm P. Technology learning in the presence of public R&D: the case of European wind power. Ecological Economics 2010, 69:2356-2362.
20. European Commission, 2008. Commission Staff Working Dokument: The Support of Electricity from Renewable Energy Sources. European Commission, Brussels.
21. Finon D., Perez Y. The social efficiency of instruments of promotion of renewable energies: a transaction-cost perspective. Ecological Economics 2007, 62:77-92.
22. Fischer C. Emissions pricing, spillovers, and public investment in environmentally friendly technologies. Energy Economics 2008, 30:487-502.
23. Fischer C., Newell R.G. Environmental and technology policies for climate change mitigation. Journal of Environmental Economics and Management 2008, 55:142-162.
24. Frondel M., Ritter N., Schmidt C.M. Germany's solar cell promotion: dark clouds on the horizon. Energy Policy 2008, 36:4198-4204.
25. Gawel E., Strunz S., Lehmann P. Germany's energy transition under attack: is there an inscrutable German Sonderweg?. Nature and Culture 2013, 8:121-133.
26. Gerlagh R., Lise W. Carbon taxes: a drop in the ocean, or a drop that erodes the stone? The effect of carbon taxes on technological change. Ecological Economics 2005, 54:241-260.
27. Golombek R., Greaker M., Hoel M. Carbon taxes and innovation without commitment. The B.E. Journal of Economic Analysis and Policy 2010, 10. Article 32.
28. Golombek R., Hoel M. Second-best climate agreements and technology policy. Advances in Economic Analysis & Policy 2006, 6. Article 1.
29. 2 Emissions abatement policies. Resource and Energy Economics 1999, 21:211-253.
30. Hansen J.D., Jensen C., Madsen E.S. The establishment of the Danish windmill industry - was it worthwhile?. Review of World Economics 2003, 139:324-347.
31. IEA, 2000. Experience Curves for Technology Policy. International Energy Agency (IEA), Paris.
32. IEA, 2009. CO2 Emissions from Fuel Combustion - Highlights. International Energy Agency (IEA), Paris.
33. IEA, 2010. Experience Curves for Technology Policy. international Energy Agency (IEA), Paris.
34. Irwin D.A., Klenow P.J. Learning-by-doing spillovers in the semiconductor industry. Journal of Political Economy 1994, 102:1200-1227.
35. Isoard S., Soria A. Technical change dynamics: evidence from the emerging renewable energy technologies. Energy Economics 2001, 23:619-636.
36. Jaffe A.B., Newell R.G., Stavins R.N. A tale of two market failures: technology and environmental policy. Ecological Economics 2005, 54:164-174.
37. Jensen S.G., Skytte K. Simultaneous attainment of energy goals by means of green certificates and emission permits. Energy Policy 2003, 31:63-71.
38. Junginger M., Faaij A., Turkenburg W. Global experience curves for wind farms. Energy Policy 2005, 33:133-150.
39. Junginger M., van Sark W., Faaij A. Technological Learning in the Energy Sector - Lessons for Policy, Industry and Science 2010, Edward Elgar, Cheltenham, UK.
40. Kahouli-Brahmi S. Testing for the presence of some features of increasing returns to adoption factors in energy system dynamics: an analysis via the learning curve approach. Ecological Economics 2009, 68:1195-1212.
41. Kalkuhl M., Edenhofer O., Lessmann K. Learning or lock-in: optimal technology policies to support mitigation. Resource and Energy Economics 2012, 34:1-23.
42. Kalkuhl M., Edenhofer O., Lessmann K. Renewable energy subsidies: second-best policy or fatal aberration for mitigation?. Resource and Energy Economics 2013, 35:217-234.
43. Katsoulacos Y., Xepapadeas A.P. Environmental innovation, spillovers and optimal policy rules. Environmental Policy and Market Structure 1996, 143-150. Kluwer Academic Publishers, Dordrecht. C. Carraro, Y. Katsoulacos, A.P. Xepapadeas (Eds.).
44. Klaassen G., Miketa A., Larsen K., Sundqvist T. The impact of R&D on innovation for wind energy in Denmark, Germany and the United Kingdom. Ecological Economics 2005, 54:227-240.
45. Klein A., Pfluger B., Held A., Ragwitz M., Resch G., Faber T. Evaluation of Different Feed-In Tariff Design Options - Best Practice Paper for the International Feed-In Cooperation 2008, Energy Economics Group & Fraunhofer Institute Systems and Innovation Research, Karlsruhe.
46. Kverndokk S., Rosendahl K.E. Climate policies and learning by doing: impacts and timing of technology subsidies. Resource and Energy Economics 2007, 29:58-82.
47. Lehmann P. Justifying a policy mix for pollution control: a review of economic literature. Journal of Economic Surveys 2012, 26:71-97.
48. Lehmann P., Creutzig F., Ehlers M.-H., Friedrichsen N., Heuson C., Hirth L., Pietzcker R. Carbon lock-out: advancing renewable energy policy in Europe. Energies 2012, 5:323-354.
49. Lehmann P., Gawel E. Why should support schemes for renewable electricity complement the EU emissions trading scheme?. Energy Policy 2013, 52:597-607.
50. Lester R.K., McCabe M.J. The effect of industrial structure on learning by doing in nuclear power plant operation. RAND Journal of Economics 1993, 115:418-438.
51. Lindman A., Söderholm P. Wind power learning rates: a conceptual review and meta-analysis. Energy Economics 2012, 34:754-761.
52. Madlener R., Stagl S. Sustainability-guided promotion of renewable electricity generation. Ecological Economics 2005, 53:147-167.
53. Massetti, E., Nicita, L., 2010. The Optimal Climate Policy Portfolio when Knowledge Spills across Sectors, CESifo Working Paper. CESifo Group, Munich.
54. Morthorst P.E. Interactions of a tradable green certificate market with a tradable permits market. Energy Policy 2001, 29:345-353.
55. Neij L. Cost dynamics of wind power. Energy 1999, 24:375-389.
56. Neij L. Cost development of future technologies for power generation-a study based on experience curves and complementary bottom-up assessments. Energy Policy 2008, 36:2200-2211.
57. Neuhoff K. Large-scale deployment of renewables for electricity generation. Oxford Review of Economic Policy 2005, 21:88-110.
58. Neuhoff K. Learning by doing with constrained growth rates:an application to energy technology policy. Energy Journal 2008, 29:165-182.
59. Parry I.W.H. Optimal pollution taxes and endogenous technological progress. Resource and Energy Economics 1995, 17:69-85.
60. Rathmann M. Do support systems for RES-E reduce EU-ETS-driven electricity prices?. Energy Policy 2007, 35:342-349.
61. Rosendahl K.E. Cost-effective environmental policy: implications of induced technological change. Journal of Environmental Economics and Management 2004, 48:1099-1121.
62. 2 cost pass through and windfall profits in the power sector. Climate Policy 2006, 6:49-72.
63. Söderholm P., Klaassen G. Wind power in Europe: a simultaneous innovation diffusion model. Environmental & Resource Economics 2007, 36:163-190.
64. Traber T., Kemfert C. Impacts of the German support for renewable energy on electricity prices, emissions, and firms. Energy Journal 2009, 30:155-178.
65. Ulph, A., Ulph, D., 2010. Optimal Climate Change Policies When Governments Cannot Commit, Discussion Paper. Department of Economics, University of StAndrews, St. Andrews, UK.
66. 2-emission markets in the Nordic countries. Energy Policy 2005, 33:2152-2163.
67. Unruh G.C. Understanding carbon lock-in. Energy Policy 2000, 28:817-830.
68. van Benthem A., Gillingham K., Sweeney J.L. Learning-by-doing and the optimal solar policy in California. Energy Journal 2008, 29:131-152.
69. Zimmerman M.B. Learning effects and the commercialization of new energy technologies: the case of nuclear power. Bell Journal of Economics 1982, 13:297-310.