Cost-effectiveness and incidence of renewable energy promotion in Germany

Böhringer, Christoph ; Landis, Florian ; Tovar Reaños, Miguel Angel

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URN: urn:nbn:de:bsz:180-madoc-419733
Document Type: Working paper
Year of publication: 2017
The title of a journal, publication series: ZEW Discussion Papers
Volume: 17-004
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: Q42 , H23 , C63,
Keywords (English): Renewable energy policy , feed-in tariffs , CGE , microsimulation
Abstract: Over the last decade Germany has boosted renewable energy in power production by means of massive subsidies. The ip side arevery 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.

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