Title: Carbon abatement with renewables : evaluating wind and solar subsidies in Germany and Spain
Authors : Abrell, Jan
Kosch, Mirjam
Rausch, Sebastian
Published in : Journal of Public Economics
Volume(Issue) : 2019
Issue : 169
Pages : 172
Pages to: 202
Publisher / Ed. Institution : Elsevier
Issue Date: 2018
License (according to publishing contract) : Licence according to publishing contract
Type of review: Peer review (Publication)
Language : English
Subjects : Decarbonization; Distributional impact; Program cost; Renewable energy policie
Subject (DDC) : 333.7: Land, recreational areas and energy
Abstract: This paper exploits the exogeneity of weather conditions to evaluate renewable energy (RE) subsidies in Germany and Spain in terms of their short-run direct program costs for reducing carbon dioxide emissions. We find that both aggregate costs and their distribution between energy producers and consumers vary significantly depending on which type of RE technology is promoted — reflecting substantial heterogeneity in production costs, temporal availability of natural resources, and market conditions, i.e., time-varying demand, carbon intensity of installed production capacities, and opportunities for cross-border trade. We estimate that the costs for reducing 1 ton of CO2 through subsidies for solar are 411 to 1944 €. Subsidizing wind entails significantly lower costs, ranging from 82 to276 €. In the short run, the economic rents for energy producers always decrease, while consumers incur four to seven times larger costs when solar is promoted but gain under RE policies promoting wind.
Departement: School of Management and Law
Organisational Unit: Center for Energy and Environment (CEE)
Publication type: Article in scientific Journal
DOI : 10.1016/j.jpubeco.2018.11.007
ISSN: 0047-2727
URI: https://digitalcollection.zhaw.ch/handle/11475/14592
Appears in Collections:Publikationen School of Management and Law

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