Combining Tariffs, Investment Subsidies and Soft Loans in a Renewable Electricity Deployment Policy

IEB Working Paper N. 2014/23

23 Pages Posted: 25 Jul 2014

See all articles by Pere Mir-Artigues

Pere Mir-Artigues

University of Lleida - Department of Applied Economics

Pablo del Rio

Spanish Council for Scientific Research (CSIC)

Date Written: June 18, 2014

Abstract

Policy combinations and interactions have received a considerable attention in the energy policy realm. The aim of our working paper is to provide insight on the cost-effectiveness of combinations of deployment instruments for the same technology. A financial model is developed for this purpose, whereby feed-in tariffs (FITs) and premiums (FIPs) are combined with investment subsidies and soft loans. The results show that combining deployment instruments is not a cost-containment strategy. However, combinations may lead to different inter-temporal distributions of the same amount of policy costs which can affect the social acceptability and political feasibility of renewable energy support.

Keywords: renewable energy, policies, combinations, cost-effectiveness, feed-in tariffs

JEL Classification: H81, L51, Q48

Suggested Citation

Mir-Artigues, Pere and del Rio, Pablo, Combining Tariffs, Investment Subsidies and Soft Loans in a Renewable Electricity Deployment Policy (June 18, 2014). IEB Working Paper N. 2014/23, Available at SSRN: https://ssrn.com/abstract=2471053 or http://dx.doi.org/10.2139/ssrn.2471053

Pere Mir-Artigues

University of Lleida - Department of Applied Economics ( email )

Campus de Cappont
Jaume II, 73
Lleida, Lleida 25001
Spain

Pablo Del Rio (Contact Author)

Spanish Council for Scientific Research (CSIC) ( email )

28006 Madrid
Spain

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