Dynamic Policy Impacts on a Technological-Change System of Renewable Energy: An Empirical Analysis

Kyunam Kim, Eunnyeong Heo and Yeonbae Kim ()
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Kyunam Kim: Korea Information Society Development Institute (KISDI)
Eunnyeong Heo: Seoul National University
Yeonbae Kim: Seoul National University

Environmental & Resource Economics, 2017, vol. 66, issue 2, No 1, 205-236

Abstract: Abstract Recently, harmonization of renewable energy policies has drawn growing attention as an important issue. To find the most effective combination, this paper identifies simultaneous interactions in an endogenous technological-change system and analyzes empirically the static and dynamic impacts of renewable energy policies in solar PV and wind power. The empirical results indicate that policy outcomes create a virtuous cycle in the technological change system through market oppurntunity, learning-by-searching, and learning-by-doing. According to the results, the static impact of technology-push and tariff incentive policies are effective on invention, while renwables obligation and CO2 tax appear to encourage cost reduction in the technologies. When the dynamic impacts of policy are considered, tariff incentives appears to outperform a renewables obligation policy with very small margin.We also found that the dynamic impact of CO2 tax varies with the level of technological development maturity.

Keywords: Solar photovoltaic; Wind power; Technological change system; Learning effects; Dynamics of policy impacts (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (15)

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DOI: 10.1007/s10640-015-9946-5

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