Renewable Energy Support Through Feed-in Tariffs: A Retrospective Stakeholder Analysis

Majid Hashemi (), Glenn Jenkins () and Frank Milne
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Majid Hashemi: Department of Economics Queen’s University Canada

No 2023-08, Development Discussion Papers from JDI Executive Programs

Abstract: This study develops a generalized evaluation framework that can be used to quantify the financial, economic, stakeholder, and environmental impacts of renewable energy support programs. The application of this framework is demonstrated by evaluating the Feed-In Tariff (FIT) program for solar distributed energy resources (DER) in Ontario, Canada. Our analysis reveals that although Ontario’s FIT program has successfully promoted the adoption of solar DER across communities, considering all the criteria of cost-benefit analysis, including optimal timing, economic resource efficiency, environmental cost-effectiveness, and distributional impacts, this policy has been a complete failure. The program has led to a significant cross-subsidization from program non-participants to participants and losses to the Canadian economy in return for insignificant environmental benefits. The losses would have been reduced by approximately 50 percent if the program had been delayed and implemented in 2016 instead of 2010. The lessons from this analysis provide insights for designing future policies to reduce greenhouse gas emissions.

Keywords: renewable energy subsidy; distributed energy resources; feed-in tariff; stakeholder analysis; benefit-cost analysis; Ontario; Canada. (search for similar items in EconPapers)
JEL-codes: D61 O2 Q42 Q48 (search for similar items in EconPapers)
Pages: 33 Pages
Date: 2023-10-17
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
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Working Paper: Renewable Energy Support Through Feed-in Tariffs: A Retrospective Stakeholder Analysis (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:dpaper:4607

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