EconPapers    
Economics at your fingertips  
 

Gone with the Wind? An Empirical Analysis of the Renewable Energy Rent Transfer

Matti Liski () and Iivo Vehviläinen ()

No 6250, CESifo Working Paper Series from CESifo

Abstract: Subsidies to renewable energy are costly and contentious. We estimate the reduction in prices that follows from the subsidized entry of wind power in the Nordic electricity market. A relatively small-scale entry of renewables leads to a large-scale transfer of surplus from the incumbent producers to the consumers: 10 % market share for wind generation eliminates one-half of the total electricity market expenditures. The subsidies generate net gains to consumers. We develop an approach to analyzing storage and renewable energy in equilibrium, and provide an anatomy of a market dominated by such technologies.

Keywords: electricity; renewables; storage; climate policies (search for similar items in EconPapers)
JEL-codes: L51 L94 Q28 Q42 Q48 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
https://www.ifo.de/DocDL/cesifo1_wp6250.pdf (application/pdf)

Related works:
Working Paper: Gone with the wind? An empirical analysis of the renewable energy rent transfer (2017) Downloads
Working Paper: Gone with the wind: an empirical analysis of the renewable energy rent transfer (2017) Downloads
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:ces:ceswps:_6250

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().

 
Page updated 2020-06-04
Handle: RePEc:ces:ceswps:_6250