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Promotion of renewable energy sources: effects on innovation

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  • Mario Ragwitz
  • Claus Huber
  • Gustav Resch

Abstract

To meet existing and future targets for renewable energy sources, national governments, EU policymakers and electricity market stakeholders have a pronounced interest in designing optimal instruments for the promotion of Renewable Energy Sources in the Electricity sector (RES-E). This paper characterises the present status of the RES-E markets in Europe, the portfolio of promotional instruments currently applied across the EU and the progress the Member States have made in reaching the targets. In particular, existing support schemes are analysed in terms of their effectiveness in achieving additional RES-E generation and in terms of their ability to meet the targets at minimum costs (efficiency). Our empirical findings show that instruments which are effective also tend to be efficient. Further, the short- and long-term diffusion of specific RES technologies depends on the support schemes in place. Finally, the paper discusses the compatibility of different instruments to support RES-E in the context of more general energy policy objectives.

Suggested Citation

  • Mario Ragwitz & Claus Huber & Gustav Resch, 2007. "Promotion of renewable energy sources: effects on innovation," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 2(1/2), pages 32-56.
    • Handle: RePEc:ids:ijpubp:v:2:y:2007:i:1/2:p:32-56
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    Citations

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    Cited by:

    1. del Río, Pablo & Bleda, Mercedes, 2012. "Comparing the innovation effects of support schemes for renewable electricity technologies: A function of innovation approach," Energy Policy, Elsevier, vol. 50(C), pages 272-282.
    2. Bürer, Mary Jean & Wüstenhagen, Rolf, 2009. "Which renewable energy policy is a venture capitalist's best friend? Empirical evidence from a survey of international cleantech investors," Energy Policy, Elsevier, vol. 37(12), pages 4997-5006, December.
    3. del Río, Pablo, 2012. "The dynamic efficiency of feed-in tariffs: The impact of different design elements," Energy Policy, Elsevier, vol. 41(C), pages 139-151.
    4. Mario Ragwitz & Simone Steinhilber, 2014. "Effectiveness and efficiency of support schemes for electricity from renewable energy sources," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 3(2), pages 213-229, March.
    5. Malte Gephart & Corinna Klessmann & Fabian Wigand, 2017. "Renewable energy auctions – When are they (cost-)effective?," Energy & Environment, , vol. 28(1-2), pages 145-165, March.
    6. Karsten Neuhoff, 2009. "Implementing the EU Renewables Directive," Working Papers EPRG 0908, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    7. Schleich, Joachim & Walz, Rainer & Ragwitz, Mario, 2017. "Effects of policies on patenting in wind-power technologies," Energy Policy, Elsevier, vol. 108(C), pages 684-695.
    8. Tobias Heffels & Russell McKenna & Wolf Fichtner, 2012. "Direct marketing of electricity from biogas and biomethane: an economic analysis of several business models in Germany," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 23(1), pages 53-70, September.
    9. Tańczuk, Mariusz & Ulbrich, Roman, 2013. "Implementation of a biomass-fired co-generation plant supplied with an ORC (Organic Rankine Cycle) as a heat source for small scale heat distribution system – A comparative analysis under Polish and G," Energy, Elsevier, vol. 62(C), pages 132-141.
    10. Mirjam Leloux & Saskia Harkema & Florentin Popescu, 2015. "Accelerating The Adoption Process Of Renewable Energy Sources Among Smes," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 247-255, July.
    11. Rocha, Luiz Célio Souza & Aquila, Giancarlo & Rotela Junior, Paulo & Paiva, Anderson Paulo de & Pamplona, Edson de Oliveira & Balestrassi, Pedro Paulo, 2018. "A stochastic economic viability analysis of residential wind power generation in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 412-419.
    12. Eyre, Nick, 2013. "Energy saving in energy market reform—The feed-in tariffs option," Energy Policy, Elsevier, vol. 52(C), pages 190-198.
    13. Zofia Gródek-Szostak & Marcin Suder & Rafał Kusa & Anna Szeląg-Sikora & Joanna Duda & Marcin Niemiec, 2020. "Renewable Energy Promotion Instruments Used by Innovation Brokers in a Technology Transfer Network. Case Study of the Enterprise Europe Network," Energies, MDPI, vol. 13(21), pages 1-13, November.
    14. Schallenberg-Rodriguez, Julieta, 2017. "Renewable electricity support systems: Are feed-in systems taking the lead?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 1422-1439.
    15. Walz, Rainer & Helfrich, Nicki & Enzmann, Alexander, 2009. "A system dynamics approach for modelling a lead-market-based export potential," Working Papers "Sustainability and Innovation" S3/2009, Fraunhofer Institute for Systems and Innovation Research (ISI).
    16. Rogge, Karoline S. & Hoffmann, Volker H., 2010. "The impact of the EU ETS on the sectoral innovation system for power generation technologies - Findings for Germany," Energy Policy, Elsevier, vol. 38(12), pages 7639-7652, December.

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