Design and Sustainability of Renewable Energy Incentives : An Economic Analysis.
Title:
Design and Sustainability of Renewable Energy Incentives : An Economic Analysis.
Author:
Meier, Peter.
ISBN:
9781464803154
Personal Author:
Physical Description:
1 online resource (337 pages)
Series:
Directions in Development - Energy and Mining
Contents:
Front Cover -- Title Page -- Copyright -- Contents -- Acknowledgments -- Executive Summary -- Abbreviations -- Chapter 1 Introduction -- Background -- Key Issues -- Objectives -- Why Is Renewable Energy Important for Poor Countries? -- Taxonomy of Financial Incentive Mechanisms -- Economic vs. Financial Incentives -- Organization of the Rest of the Report -- Notes -- Bibliography -- Chapter 2 The Economic Rationale for Renewable Energy -- Analytical Framework -- Local Environmental Damage Costs -- Discount Rate -- The Social Cost of Carbon -- Fossil-Fuel Price Subsidies -- Renewable Energy and Employment -- Specific Questions for the Case Studies -- Methodology -- Notes -- Bibliography -- Chapter 3 Case Study: Vietnam -- Sector Background -- Power Sector Development -- Renewable Energy Development -- Renewable Energy Resource Endowment: The Supply Curve -- Production Costs -- The Avoided Social Cost of Thermal Generation -- Carbon Accounting and the Clean Development Mechanism (CDM) -- Renewable Energy Targets -- Design of Incentive Schemes -- Incremental Costs and Their Recovery -- Impact of Renewable Energy Tariffs on the Consumer -- Decreasing the Consumer Cost with International Assistance -- The Cost of Fossil-Fuel Subsidies -- Conclusions -- Notes -- Bibliography -- Chapter 4 Case Study: Sri Lanka -- Sector Background -- Renewable Energy Development -- Renewable Energy Resource Endowment and the Renewable Energy Supply Curve -- Capital Costs -- The Avoided Social Cost of Thermal Generation -- Carbon Accounting and CDM -- Renewable Energy Targets -- Design of Incentive Schemes -- Incremental Costs and Their Recovery -- Impact of Renewable Energy Tariffs on the Consumer -- The Cost of Fossil-Fuel Subsidies -- Financing New and Renewable Energy -- Conclusions -- Notes -- Bibliography -- Chapter 5 Case Study: Indonesia -- Sector Background.
Renewable Energy Development and the Resource Endowment -- Renewable Energy Targets -- Production Costs -- Geothermal Development Policy Issues -- The Renewable Energy Supply Curve -- Carbon Accounting and CDM -- Design of Incentive Schemes -- Detailed Design of the Geothermal Feed-In Tariff -- Incremental Costs and Their Recovery -- Potential Impact of Incremental Costs on the Consumer -- Buying Down the Price of Renewable Energy with International Assistance -- The Environmental Costs of the Electricity Subsidy -- Conclusions -- Notes -- Bibliography -- Chapter 6 Case Study: South Africa -- Sector Background -- Renewable Energy Development -- Renewable Energy Targets -- Design of Incentive Schemes -- Impact of Renewable Energy Tariffs on the Consumer -- Conclusions -- Note -- Bibliography -- Chapter 7 Case Study: Tanzania -- Sector Background -- Renewable Energy Development -- Renewable Energy Targets -- Design of Incentive Schemes -- Conclusions -- Notes -- Bibliography -- Chapter 8 Case Study: The Arab Republic of Egypt -- Sector Background -- Renewable Energy Development -- Renewable Energy Targets -- Production Costs -- Design of Incentive Schemes -- Carbon Accounting -- Incremental Costs and Their Recovery -- Buying Down the Incremental Costs with Concessionary Finance -- Conclusions -- Notes -- Bibliography -- Chapter 9 Case Study: Brazil -- Sector Background -- Renewable Energy Development -- Renewable Energy Targets -- Design of Incentive Schemes -- Financing of Incremental Costs -- Conclusions -- Note -- Bibliography -- Chapter 10 Case Study: Turkey -- Sector Background -- Renewable Energy Resource Endowment -- Renewable Energy Development -- Renewable Energy Targets -- Design of Incentive Schemes -- Conclusions -- Notes -- Bibliography -- Chapter 11 Summary and Conclusions -- The Financial Health of Power Utilities.
Widespread Consumer and Political Support -- Setting Renewable Energy Targets -- The Difficulty of Predicting Unexpected Consequences -- Risk and Reward -- Institutional Barriers -- The Avoided Cost of Carbon -- Definitions of Renewable Energy -- The Transparency of Tariffs -- Auctions -- Note -- Bibliography -- Appendix A Dealing with Uncertainty in Setting Renewable Energy Targets: Croatia -- Appendix B Multi-Attribute Decision Analysis and Trade-Off Plots -- Appendix C Estimating Incremental Costs from Renewable Energy Supply Curves -- Boxes -- Figures -- Tables -- Back Cover.
Abstract:
The novelty of this work is the fact that it introduces a rigorous and objective economic perspective of current renewable energy support mechanisms and an empirical analysis of the strengths and weaknesses of these mechanisms, which is much needed in a debate often dominated by widespread misconceptions. The economic rationale for renewable energy is straightforward: the optimum amount of renewable energy for grid-connected generation is given by the intersection of the renewable energy supply curve with the avoided cost of thermal electricity generation. The proposed analytical framework: (i) differentiates and illustrates trade-offs--among local, regional, and national impacts, in the short and long run; (ii) captures distributional impacts; and (iii) captures externalities and compares alternative projects based on equivalent output and cost. Accordingly, the study advocates for the need to get the economic, financial, and institutional basics right for the deployment of renewable energy. The study's integration of renewable energy subsidies with fossil subsidies is another novel and important contribution. This allows important comparisons. For example, to reduce carbon intensity in developing country economies, is it more efficient to deploy renewable energy or implement alternative options, such as eliminating subsidies on fossil fuels? The work is based on case studies of Vietnam, Indonesia, Sri Lanka, South Africa, Tanzania, Egypt, Brazil, and Turkey, selected to provide a representative sample of countries with different energy endowments (coal, natural gas, and hydro-based systems) and policy incentives (from feed-in tariffs to auctions). Along the way, the incremental cost of renewable energy is compared with the average cost of generation. The selection and design of support mechanisms in turn determines the impacts on the budget and
residential consumers. The main lessons emerging from the case studies are that successful renewable energy policies: -Will only be effective once the state-owned utilities who are the buyers of grid-connected renewable energy are themselves in good financial health -Need to be grounded in economic analysis and accompanied by the application of market principles to ensure economic efficiency -Require a sustainable, equitable, and transparent recovery of incremental costs.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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