Publication type: Article in scientific journal
Type of review: Peer review (publication)
Title: Carbon abatement with renewables : evaluating wind and solar subsidies in Germany and Spain
Authors: Abrell, Jan
Kosch, Mirjam
Rausch, Sebastian
DOI: 10.1016/j.jpubeco.2018.11.007
Published in: Journal of Public Economics
Volume(Issue): 2019
Issue: 169
Page(s): 172
Pages to: 202
Issue Date: 2018
Publisher / Ed. Institution: Elsevier
ISSN: 0047-2727
Language: English
Subjects: Decarbonization; Distributional impact; Program cost; Renewable energy policie
Subject (DDC): 333.79: 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 to 276 €. 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.
Fulltext version: Published version
License (according to publishing contract): Licence according to publishing contract
Departement: School of Management and Law
Organisational Unit: Center for Energy and Environment (CEE)
Appears in collections:Publikationen School of Management and Law

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