Modeling Economic Impacts of Renewable Energy Expansion – The Experience for Germany

Dietmar Edler

No 4629, EcoMod2012 from EcoMod

Abstract: In recent years Germany - like other countries - has followed strategies to expand the share of renewable energy (RE) in the electricit y and heating market. Looking at realized investments and the dynamics of market penetrat ion of RE technologies the country is in the position of a frontrunner in this policy field. Given last year’s decision to phase out nuclear energy it can be expected that Germany will stay in the lead with respect to reshaping the energy system. The rationale behind the RE expansion are di verse. Climate change mitigation, reducing the dependence on energy imports by explo iting domestic energy potentials and the expectation of rising (global) prices for fossil fuels are discussed. A strong home market is seen as a competitive advantage for domestic suppliers of RE technologies on export markets so that fostering the diffusion of RE has also elements of “green” industrial policy. At the same time the (private) costs of energy based on RE sources are for the moment higher than costs of energy based on conventional sources. Therefore it is an interesting policy and scientific question if the overall balance of economic impacts of the German RE expansion strategy is positive or negative. This ques tion will be addressed applying econometric modeling and scenario-based analysis. See above See above

Keywords: Germany; Energy and environmental policy; Energy and environmental policy (search for similar items in EconPapers)
Date: 2012-07-01
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:ekd:002672:4629

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