IDEAS home Printed from https://ideas.repec.org/p/ags/hwwadp/26197.html
   My bibliography  Save this paper

Avoiding perverse effects of baseline and investment additionality determination in the case of renewable energy projects

Author

Listed:
  • Bode, Sven
  • Michaelowa, Axel

Abstract

As part of the international climate negotiations there is a lot of discussion about methodologies for quantifying emission reductions of greenhouse gas reduction projects (baseline discussion) and about granting emission reduction credits only to projects that are additional (Investment Additionality discussion). So far this discussion has been fairly general and has not systematically analysed the impacts on investor decisions. We analyse these impacts for the case of renewable energies and show that the approaches under discussion can all give perverse incentives to invest at unfavourable sites. Thus, higher CO2 abatement costs than without any crediting system might be realised resulting in inefficiencies in climate policy. To overcome this problem we introduce a new Investment Additionality concept and propose to have only one emission reduction factor for each electricity grid.

Suggested Citation

  • Bode, Sven & Michaelowa, Axel, 2001. "Avoiding perverse effects of baseline and investment additionality determination in the case of renewable energy projects," Discussion Paper Series 26197, Hamburg Institute of International Economics.
    • Handle: RePEc:ags:hwwadp:26197
    DOI: 10.22004/ag.econ.26197
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/26197/files/dp010148.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.26197?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Burian, Martin, 2006. "The Clean Development Mechanism, sustainable develpment and its assessment," HWWA Reports 264, Hamburg Institute of International Economics (HWWA).

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:hwwadp:26197. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/hwwaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.