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Estimating the Amount of a Global Feed-in Tariff for Renewable Electricity

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  • Samantha DeMartino, David Le Blanc

Abstract

We present a simple model to estimate the subsidy cost embedded in a global feed-in tariff (GFIT) to simultaneously stimulate electrification and the take-up of renewable energy sources for electricity generation in developing countries. The GFIT would subsidize developing countries for investments they make in generation capacity for renewable electricity up to a threshold level of electricity consumption per capita. Between 2010 and 2025, countries below this threshold strive to bridge the gap by 2025, when subsidies—based on the difference between the costs of renewable technologies and conventional energy sources-end.

Suggested Citation

  • Samantha DeMartino, David Le Blanc, 2010. "Estimating the Amount of a Global Feed-in Tariff for Renewable Electricity," Working Papers 95, United Nations, Department of Economics and Social Affairs.
    • Handle: RePEc:une:wpaper:95
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    References listed on IDEAS

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    5. World Bank, 2008. "World Development Indicators 2008," World Bank Publications - Books, The World Bank Group, number 11855.
    6. Couture, Toby & Gagnon, Yves, 2010. "An analysis of feed-in tariff remuneration models: Implications for renewable energy investment," Energy Policy, Elsevier, vol. 38(2), pages 955-965, February.
    7. Karsten Neuhoff, 2009. "International Support for Domestic Climate Policies," Working Papers EPRG 0907, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
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    Cited by:

    1. Hu, Jing & Harmsen, Robert & Crijns-Graus, Wina & Worrell, Ernst & van den Broek, Machteld, 2018. "Identifying barriers to large-scale integration of variable renewable electricity into the electricity market: A literature review of market design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2181-2195.
    2. Huenteler, Joern, 2014. "International support for feed-in tariffs in developing countries—A review and analysis of proposed mechanisms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 857-873.

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    More about this item

    Keywords

    feed-in tariff; renewable energy; electrification; low-carbon development;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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