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Hybrid modeling to support energy-climate policy: Effects of feed-in tariffs to promote renewable energy in Portugal

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  • Proença, Sara
  • St. Aubyn, Miguel

Abstract

Feed-in tariffs have been the main policy instrument applied in Portugal for the promotion of electricity produced from renewable energy sources under the EU Directives on energy and climate regulation. In this paper, we provide an empirical impact assessment of the economic and environmental effects of Portugal's FITs policy to promote RES-E generation. Impact assessment of policy instruments plays a crucial role on decision-making process. For numerical simulations, we make use of a hybrid top-down/bottom-up general equilibrium modeling approach, which represents a reliable tool to analyze the complex interactions between economic, energy, and environmental issues related to energy policies.

Suggested Citation

  • Proença, Sara & St. Aubyn, Miguel, 2013. "Hybrid modeling to support energy-climate policy: Effects of feed-in tariffs to promote renewable energy in Portugal," Energy Economics, Elsevier, vol. 38(C), pages 176-185.
    • Handle: RePEc:eee:eneeco:v:38:y:2013:i:c:p:176-185
    DOI: 10.1016/j.eneco.2013.02.013
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    16. John Foster & Liam Wagner, 2014. "International experience with transformations in electricity markets: A Short Literature Review," Energy Economics and Management Group Working Papers 2-2014, School of Economics, University of Queensland, Australia.
    17. Milad Maralani & Milad Maralani & Basil Sharp & Golbon Zakeri, 2016. "The Potential Impact of Industrial Energy Savings on The New Zealand Economy," EcoMod2016 9308, EcoMod.
    18. Musonye, Xavier S. & Davíðsdóttir, Brynhildur & Kristjánsson, Ragnar & Ásgeirsson, Eyjólfur I. & Stefánsson, Hlynur, 2020. "Integrated energy systems’ modeling studies for sub-Saharan Africa: A scoping review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 128(C).
    19. Helgesen, Per Ivar & Tomasgard, Asgeir, 2018. "From linking to integration of energy system models and computational general equilibrium models – Effects on equilibria and convergence," Energy, Elsevier, vol. 159(C), pages 1218-1233.
    20. Li, Wei & Lu, Can & Zhang, Yan-Wu, 2019. "Prospective exploration of future renewable portfolio standard schemes in China via a multi-sector CGE model," Energy Policy, Elsevier, vol. 128(C), pages 45-56.
    21. Rodríguez, M. & Teotónio, C. & Roebeling, P. & Fortes, P., 2023. "Targeting energy savings? Better on primary than final energy and less on intensity metrics," Energy Economics, Elsevier, vol. 125(C).
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    More about this item

    Keywords

    Feed-in tariffs (FITs); RES-E promotion; Energy-climate policy analysis; Hybrid CGE modeling; Portugal;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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