Economics at your fingertips  

Subsidizing renewables as part of taking leadership in international climate policy: The German case

Wolfgang Buchholz, Lisa Dippl and Michael Eichenseer

Energy Policy, 2019, vol. 129, issue C, 765-773

Abstract: Leadership in Climate Policy is usually associated with leading by example in mitigation efforts whereas little attention has been paid to leadership in climate-friendly technological progress. We point out that pioneering activities that create reliable demand such as Germany's feed-in tariff for solar energy constitute such technological leadership. Based on global learning curves, we argue that the enormous reduction of prices for photovoltaic modules is due to demand side interventions like Germany's EEG and related international technology diffusion and policy transfer, especially to China. For the German case, we calculate that the costs of incentivizing this technological progress through the EEG add up to a range between 112.34 and 122.18 Bn Euro (based on a thought experiment of a hypothetical new entrant in 2014).

Keywords: Leadership; Climate change; Solar photovoltaic; Subsidies; Feed-intariffs; Ambition (search for similar items in EconPapers)
JEL-codes: Q55 F53 O33 O38 H41 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: 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 2019-08-10
Handle: RePEc:eee:enepol:v:129:y:2019:i:c:p:765-773