Cost-effectiveness and incidence of renewable energy promotion in Germany

Christoph Böhringer, Florian Landis and Miguel Angel Tovar Reaños

No 17-004, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

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 ameliorated 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: C63 H23 Q42 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cmp, nep-ene, nep-eur and nep-reg
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https://www.econstor.eu/bitstream/10419/149748/1/878841423.pdf (application/pdf)

Related works:
Working Paper: Cost-effectiveness and Incidence of Renewable Energy Promotion in Germany (2016)
Working Paper: Cost-Effectiveness and Incidence of Renewable Energy Promotion in Germany (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:17004

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