EconPapers    
Economics at your fingertips  
 

Is Belgium Overshooting in its Policy Support to Cut the Cost of Capital of Renewable Sources of Energy ?

Antonio Estache and Anne-Sophie Steichen

Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: The main purpose of this paper is to document the differences in the cost of capital in Belgium across electricity generation companies, depending on whether they rely on traditional thermal sources or on RES. The average results are quite surprising and in sharp contrast with the results obtained for the UK or Germany by other researchersfor instancer. Comparing 3 main categories (renewable, non renewable and mixed), the Non-Renewable appear to have a lower CoC than the other in contrast to what the literature suggests should be expected The Vanilla CoC for the RES of our sample show lower CoC levels by around 30bps than for non-RES. The conclusion is the same from the analysis of the Pre-tax WACC. We take this as evidence that Belgium may have overshot in its efforts to stimulate investment to increase the relative importance of renewable energy sources, at least until the reduction in these efforts started in 2013

Pages: 21 p.
Date: 2015-04
New Economics Papers: this item is included in nep-ene, nep-eur and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published by:

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/1984 ... EICHEN-isbelgium.pdf 2015-13-ESTACHE_STEICHEN-isbelgium (application/pdf)

Related works:
Journal Article: Is Belgium overshooting in its policy support to cut the cost of capital of renewable sources of energy ? (2015) Downloads
Working Paper: Is Belgium overshooting in its policy support to cut the cost of capital of renewable sources of energy? (2015)
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:eca:wpaper:2013/198443

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/198443

Access Statistics for this paper

More papers in Working Papers ECARES from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().

 
Page updated 2025-03-30
Handle: RePEc:eca:wpaper:2013/198443