Publication Details

Category Text Publication
Reference Category Journals
DOI 10.1016/j.enpol.2016.12.007
Title (Primary) Rationales for technology-specific RES support and their relevance for German policy
Author Gawel, E.; Lehmann, P.; Purkus, A.; Söderholm, P.; Witte, K.
Source Titel Energy Policy
Year 2017
Department OEKON
Volume 102
Page From 16
Page To 26
Language englisch
Keywords Renewable energy technologies; Technology-specific support; Market failures; Germany
UFZ wide themes RU6;
Abstract In order to achieve cost-effective RES-E deployment it is often argued that technology-neutral support schemes for renewables are indispensable. Against this background, RES-E support policies making widely use of technology differentiation in remuneration settings, e.g. across the EU, are frequently criticized from a theoretical point of view. However, in this paper we provide a systematic critique of the technology neutrality concept as a foundation for designing policy support schemes in the RES-E technology field. Specifically, the main objective of the paper is to scrutinize the arguments for technology-neutrality, and discuss three conceptual arguments for why technology-specific support schemes could in fact help minimize the societal costs of reaching future RES-E targets. We also briefly address different political economy concerns, which could constrain the choice of cost-effective policy support schemes, and that have to be taken into account for economic policy advice. For empirical illustration of the key arguments we refer to the case of German RES-E policy-making. The central conclusion from this paper is that technology-specific RES-E support schemes may generate significant economic benefits, particularly if technology markets work imperfectly and in second-best policy settings with additional non-internalized market failures.
Persistent UFZ Identifier
Gawel, E., Lehmann, P., Purkus, A., Söderholm, P., Witte, K. (2017):
Rationales for technology-specific RES support and their relevance for German policy
Energy Policy 102 , 16 - 26 10.1016/j.enpol.2016.12.007