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Economic Impacts of Renewable Energy Production in Germany

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  • Christoph Böhringer, Florian Landis, and Miguel Angel Tovar Reaños

Abstract

Over the last decade Germany has boosted renewable energy in power production by means of massive subsidies. The flip side are very high electricity prices which raise 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 analyses to investigate the economic impacts of Germany's renewable energy promotion. We find that the regressive effects of renewable energy promotion could be attenuated by alternative subsidy financing mechanisms.

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  • Christoph Böhringer, Florian Landis, and Miguel Angel Tovar Reaños, 2017. "Economic Impacts of Renewable Energy Production in Germany," The Energy Journal, International Association for Energy Economics, vol. 0(KAPSARC S).
    • Handle: RePEc:aen:journl:ej38-si1-bohringer
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    2. Dulal Chandra Pattak & Farian Tahrim & Mahdi Salehi & Liton Chandra Voumik & Salma Akter & Mohammad Ridwan & Beata Sadowska & Grzegorz Zimon, 2023. "The Driving Factors of Italy’s CO 2 Emissions Based on the STIRPAT Model: ARDL, FMOLS, DOLS, and CCR Approaches," Energies, MDPI, vol. 16(15), pages 1-21, August.
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    5. Maliszewska-Nienartowicz, Justyna, 2024. "Impact of Russia's invasion of Ukraine on renewable energy development in Germany and Italy," Utilities Policy, Elsevier, vol. 87(C).
    6. Sefa Awaworyi Churchill & Russell Smyth & Trong‐Anh Trinh, 2023. "Crime, Weather and Climate Change in Australia," The Economic Record, The Economic Society of Australia, vol. 99(324), pages 84-107, March.
    7. Madhu Khanna, 2021. "COVID‐19: A Cloud with a Silver Lining for Renewable Energy?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 73-85, March.
    8. Doda, Baran & Fankhauser, Sam, 2020. "Climate policy and power producers: The distribution of pain and gain," Energy Policy, Elsevier, vol. 138(C).
    9. Zhang, Shijie & Wei, Jing & Chen, Xi & Zhao, Yuhao, 2020. "China in global wind power development: Role, status and impact," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    10. Dell’Anna, Federico, 2021. "Green jobs and energy efficiency as strategies for economic growth and the reduction of environmental impacts," Energy Policy, Elsevier, vol. 149(C).
    11. Reaños, Miguel Tovar & De Bruin, Kelly & Meier, David & Yakut, Aykut Mert, 2022. "Economic and Distributional Impacts of turning the Value-Added Tax into a Carbon Tax," Papers WP739, Economic and Social Research Institute (ESRI).
    12. Inha Oh & Wang-Jin Yoo & Kihwan Kim, 2020. "Economic Effects of Renewable Energy Expansion Policy: Computable General Equilibrium Analysis for Korea," IJERPH, MDPI, vol. 17(13), pages 1-21, July.
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    14. Tovar Reaños, Miguel A. & Wölfing, Nikolas M., 2018. "Household energy prices and inequality: Evidence from German microdata based on the EASI demand system," Energy Economics, Elsevier, vol. 70(C), pages 84-97.
    15. Elizabeth L. Roos & Heinrich R. Bohlmann & Jonathan M. Horridge & Lardo Stander & Roula Inglesi-Lotz, 2018. "Regional economic effects of changes in South Africa’s electricity generation mix," Working Papers 756, Economic Research Southern Africa.
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