Economics at your fingertips  

Prices versus quantities: Comparing economic efficiency of feed-in tariff and renewable portfolio standard in promoting renewable electricity generation

Gobong Choi, Sung-Yoon Huh, Eunnyeong Heo and Chul-Yong Lee

Energy Policy, 2018, vol. 113, issue C, 239-248

Abstract: In order to promote renewable electricity generation, several countries have been adopting a feed-in tariff (FIT) or a renewable portfolio standard (RPS). Of these two renewable energy policies, investigating which one has better performance is a subject of debate. This study comparatively analyzes the economic efficiency of FIT and RPS in the South Korean renewable energy market. FIT was implemented from 2002 to 2011, while RPS has been in force since 2012; hence, a comparative analysis of the two policies is ideal. The benefit cost ratio and net present value were measured from two different perspectives: the government and energy producers. The results showed that RPS was more efficient for photovoltaic energy from the government's perspective, whereas FIT, for non-photovoltaic energy, such as wind power, bio-energy, and fuel cells. However, from the energy producers’ perspective, FIT was more efficient for photovoltaic energy, while RPS was more efficient for non-photovoltaic energy.

Keywords: Renewable energy; Feed-in tariff; Renewable portfolio standard; Economic efficiency (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2020-01-14
Handle: RePEc:eee:enepol:v:113:y:2018:i:c:p:239-248