The Static and Dynamic Efficiency of Instruments of Promotion of Renewables

Dominique Finon and Philippe Menanteau
Additional contact information
Dominique Finon: LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: This paper deals with a comparative analysis of the economic and social efficiency of the instruments used to promote renewable energy sources (RES), first from a static standpoint and then using dynamic criteria to assess their ability to stimulate technological progress and cost reduction. First, the instruments are analysed in relation to the classical discussion of environmental policy that opposes price-based instruments versus quantity-based instruments in an uncertain environment (feed-in tariffs as price based system on one hand, quotas + green certificates, competitive bidding as quantity-based instruments on the other hand). Next, the incentives to invest and innovate in the context of each framework are analysed in relation to the sharing of the surplus associated with each of them between producers/constructors and consumers or the public budget. Finally, the paper looks at the overall cost-efficiency of the policies on the basis of each instrument, by referring to factual evidence in European experiences. It concludes that if social preference is attached to climate change prevention and reflected in a high quantitative objective for renewables, sliding scale feed-in tariffs are a good compromise in order to promote technical progress and national RES industry also. The quota/certificate system also presents a number of advantages in terms of static efficiency, but its ability to stimulate innovation still has to be confirmed by experience.

Keywords: énergies renouvelables; progrès technologique; certificat vert (search for similar items in EconPapers)
Date: 2003
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00001300v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Published in Energy Studies Review, 2003, 12 (1), pp.53-82

Downloads: (external link)
https://shs.hal.science/halshs-00001300v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00001300

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().