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Cost-effectiveness and Incidence of Renewable Energy Promotion in Germany

Christoph Böhringer, Florian Landis () and Miguel Tovar Reanos ()

No V-390-16, Working Papers from University of Oldenburg, Department of Economics

Abstract: Over the last decade Germany has boosted renewable energy in power production by means of massive subsidies. The flip side are very high electricity prices which raises concerns that the transition cost towards a renewable energy system will be mainly borne by poor households. In this paper, we combine computable general equilibrium and microsimulation analysis to investigate the cost-effectiveness and incidence of Germany's renewable energy promotion. We find that the regressive effects of renewable energy promotion could be attenuated by alternative subsidy financing mechanisms which achieve the same level of electricity generation from renewable energy sources.

Keywords: Renewable energy policy; feed-in tariffs; CGE; microsimulation (search for similar items in EconPapers)
JEL-codes: Q42 H23 C63 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2016-07, Revised 2016-07
New Economics Papers: this item is included in nep-cmp, nep-ene, nep-eur and nep-reg
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Published in Oldenburg Working Papers V-390-16

Downloads: (external link) ... ete/vwl/V-390-16.pdf First version, 2016 (application/pdf)

Related works:
Working Paper: Cost-effectiveness and incidence of renewable energy promotion in Germany (2017) Downloads
Working Paper: Cost-Effectiveness and Incidence of Renewable Energy Promotion in Germany (2016) Downloads
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