Subsidies for learning in renewable energy technologies under market power and emission trading

Research output: Working paperWorking papers

Authors

Under perfect competition on the output market, first best technology subsidies in the presence of learning by doing are justified by knowledge spill overs that are not accounted for by individual companies. First best output subsidies are thus depending directly on the learning effects and are, if applicable, positive. Considering electricity markets, a setting of imperfect competition is more appropriate. We show that the second best output subsidy for learning by doing in renewable energies takes the market distortion due to imperfect competition into account and is of ambiguous sign. Based on simulations with a European electricity market model, we find that second best renewable energy subsidies are positive and only insignificantly impacted by market power. By contrast, the welfare gains from an optimal subsidy are considerably higher compared to a hypothetical situation of perfect competition.
Original languageEnglish
Place of PublicationBerlin
PublisherDeutsches Institut für Wirtschaftsforschung (DIW)
Number of pages18
Publication statusPublished - 05.2011
Externally publishedYes

    Research areas

  • energy policy, renewable energy, learning by doing, imperfect competition, emission trading, Regenerative Energie, Lernprozess, Elektrizitätswirtschaft, Förderung regenerativer Energien, Subvention, Unvollkommener Wettbewerb, Emissionshandel, Theorie, Europa
  • Economics

Links

Recently viewed

Publications

  1. Best-Practice-Beispiel: Wie kann Mentoring in die neue Studienorganisation implementiert werden?
  2. Strukturen und Probleme des Brexit-Abkommens
  3. Ready for new business models?
  4. Small Particle Size Magnesium in One-pot Grignard-Zerewitinoff-like Reactions under Mechanochemical Conditions
  5. Trace metal dynamics in floodplain soils of the river Elbe
  6. Distinguishing between struggling and skilled readers based on their prosodic speech patterns in oral reading
  7. Irrtümer bei der Interpretation des "ökologischen Fehlschlusses"
  8. Hermann Bahr.
  9. Outsourcing kommoditisierter Geschäftsprozesse
  10. Beyond budgeting
  11. "Lob des Unscheinbaren"
  12. Does a smile open all doors? Understanding the impact of appearance disclosure on accommodation sharing platforms
  13. Logotoaster
  14. Leverage points to foster human–nature connectedness in cultural landscapes
  15. Glen Mills Schools
  16. § 25 Klärgas
  17. Begriff und Merkmale junger Unternehmen
  18. Tausch, Technik, Krieg
  19. Subversive Gamification
  20. Apocalypse postponed
  21. "Life with Uncle"
  22. Schwerbehinderung
  23. A Lyapunov-based Adaptive Control Law for an Electromagnetic Actuator
  24. Mother-infant social gaze dynamics relate to infant brain activity and word segmentation
  25. Magnesium
  26. Offshore Wind-Farm Regulation in Germany
  27. Archive des Digitalen
  28. Re-investigating the insurance-growth nexus using common factors
  29. Ein unwetter in Jerusalem
  30. Zur Weiterbildung an die Hochschule?
  31. A state-trait analysis of job satisfaction
  32. Reflexive Responsibilisierung
  33. Affektive Komponenten der Mathematikkompetenz
  34. Governing new European democracies
  35. Reducing aquatic micropollutants – Increasing the focus on input prevention and integrated emission management
  36. Attention and Information Acquisition
  37. Gesundheitsreport Grundschule
  38. Vegetation mapping in central Asian dry eco-systems using Landsat ETM+.
  39. RoMe
  40. Extent, perception and mitigation of damage due to high groundwater levels in the city of Dresden, Germany
  41. Gesellschaftliche Partizipation an Technisierungsprozessen
  42. Selbstorganisation managen
  43. Fate of Pesticides and Their Transformation Products
  44. Public Value - Gesellschaftliche Wertschöpfung als unternehmerische Pflicht
  45. Gentelligent Factory Structures and Assembly Control