Second-Best Analysis of European Energy Policy: Is One Bird in the Hand Worth Two in the Bush?
Oliver Schenker and
No 2015.106, Working Papers from Fondazione Eni Enrico Mattei
This paper studies policy instruments that correct insufficient learning-by-doing (LbD) and research and development (R&D) of renewable electricity technologies and insufficient investments in energy efficiency (EE) in the presence of carbon pricing. The theoretical model analysis shows how to re-adjust the first-best in second-best situations, in which one of the policy instruments is restricted. Calibrated to the European power sector, the first-best choice of all instruments reduces the climate policy cost by one third. Feed-in tariffs turn out to be good substitutes for LbD, but not for R&D or EE subsidies.
Keywords: Second-best; Climate Policy; Energy Policy; Feed-in tariff; Power Sector; EU (search for similar items in EconPapers)
JEL-codes: C61 O33 Q48 Q54 Q55 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene, nep-env, nep-ino and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://feem-media.s3.eu-central-1.amazonaws.com/w ... oads/NDL2015-106.pdf (application/pdf)
Working Paper: Second-Best Analysis of European Energy Policy: Is One Bird in the Hand Worth Two in the Bush? (2016)
Working Paper: Second-best analysis of European energy policy: Is one bird in the hand worth two in the bush? (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2015.106
Access Statistics for this paper
More papers in Working Papers from Fondazione Eni Enrico Mattei Contact information at EDIRC.
Bibliographic data for series maintained by Alberto Prina Cerai ().