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Prof. Dr. Alexander Haupt: Environmental Policy and Renewable Energy

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Im Rahmen des Forschungskolloquiums des Institutes für Wirtschaftswissenschaften wird Prof. Dr. Alexander Haupt (Plymouth University) am 6. Februar 2018 einen Vortrag an der Universität Freiburg halten.

Was
  • Vorträge
Wann 06.02.2018
von 11:00 bis 13:00
Wo 2330
Termin übernehmen vCal
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Abstract

The renewable energy sector is key to meeting climate policy targets and threatens the market power of conventional fossil-fuel electricity generators. The intermittence of renewable energy sources complicates environmental policy. This paper justifies to some extent the use of feed-in tariffs, capacity taxes and price caps in addition to emission taxes. Feed-in tariffs or capacity taxes might be necessary to counteract strategic overinvestment in conventional fossil-fuel capacities, but this strategic overinvestment can turn into underinvestment if the costs of renewable energy have sufficiently plummeted and the share of customers on time-invariant pricing schemes is sufficiently large. Emission taxes and feed-in tariffs might increase or decrease, as the costs of renewable energy decline, and the paper identifies the circumstances under which these different outcomes result. The analysis is based on a model in which a conventional fossil-fuel electricity producer competes with a potentially large number of renewable energy generators. The fossil-fuel electricity producer might apply different technologies.

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