Achieving long-term renewable energy goals: Do intermediate targets matter?

Busra Gencer and Ann van Ackere

Utilities Policy, 2021, vol. 71, issue C

Abstract: Policymakers in various countries often determine roadmaps, a sequence of intermediate goals to achieve their long-term renewable energy objectives. We study the influence of roadmaps on regulatory decisions and market functioning using laboratory experiments. We simulate a stylized electricity market with two generation technologies (a renewable “green” technology and a thermal source) whose share of renewable generation must increase over a 40-year period. Investments in thermal capacity are driven by subsidies and profitability, while green capacity investments solely depend on subsidies. Participants act as regulators and decide each year how many MWs of green and thermal capacity to subsidize while managing the trade-off between blackout risk, cost for customers and subsidies. We manipulate the presence and the time granularity of roadmaps.

Keywords: Electricity markets; Long-term targets; Roadmap; Experiment (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0957178721000771
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: https://EconPapers.repec.org/RePEc:eee:juipol:v:71:y:2021:i:c:s0957178721000771

DOI: 10.1016/j.jup.2021.101243

Access Statistics for this article

Utilities Policy is currently edited by Beecher, Janice

More articles in Utilities Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().