(Mis)allocation of Renewable Energy Sources

Stefan Lamp and Mario Samano

No 20-1103, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: Policies to incentivize the adoption of renewable energy sources (RES) usually offer little flexibility to adapt to heterogeneous benefits across locations. We evaluate the geographical misallocation of RES associated with the uniform nature of subsidies. We estimate the dispersion of marginal benefits from solar production in Germany and compute the social and private benefits from optimal reallocations of residential solar installations keeping total capacity fixed. We find that total value of solar would increase by 6.4% relative to the current allocation using conservative values for solar penetration. Reallocating all solar and taking into account transmission would yield considerably larger gains.

Keywords: Renewable energy sources; electricity markets; feed-in-tariffs; ancillary services; misallocation. (search for similar items in EconPapers)
JEL-codes: H23 Q42 Q48 Q51 (search for similar items in EconPapers)
Date: 2020-05
New Economics Papers: this item is included in nep-ene and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: (Mis)allocation of Renewable Energy Sources (2023)
Working Paper: (Mis)allocation of Renewable Energy Sources (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:124280

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