Italy: Renewables Policy as a Barrier to Energy Innovation

Dominic Standish
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Dominic Standish: Consortium of Universities (CIMBA), Via Collegio 40, 31011 Asolo, Treviso, Veneto, Italy University of Iowa, Consortium of Universities, 108 John Pappajohn Business Bldg. Ste W230, Iowa City, IA 52242-1000, USA

Energy & Environment, 2012, vol. 23, issue 6-7, 1005-1025

Abstract: Italy's limited natural energy reserves, high dependency on imports and enormous user costs provide an opportunity to innovate. Yet the 2008–2011 Italian government failed to uphold its legislation permitting construction of innovative nuclear reactors. As this government's popularity dwindled, subsidising low-risk renewable projects appeared more popular, especially for solar installations. European and Italian subsidies for Italian renewable energy encouraged the more widespread application of existing technologies, rather than innovation. During 2012, Italy's technocratic government has debated a new energy law, which will continue incentives for low-capacity, renewable and low-risk energy projects, although with reduced subsidies. The new law will not support serious technological innovation to boost energy production, reduce import dependency or defray high costs. Instead, this paper recommends expanding hydro-electric power, exploiting shale gas, constructing more large-scale solar installations, equipping coal-fired power plants with carbon capture and storage, and building at least four nuclear European Pressurised Reactors.

Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:sae:engenv:v:23:y:2012:i:6-7:p:1005-1025

DOI: 10.1260/0958-305X.23.6-7.1005

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