Modelling the social funding and spill-over tax for addressing the green energy financing gap
By Naoyuki Yoshino, Farhad Taghizadeh‐Hesary, Masaki Nakahigashi. Economic Modelling, 2019
148 citations recorded by the source corpus.
Abstract The major challenge for filling the financing gaps of green energy is lower rate of return of green projects comparing to fossil fuels. Electricity tariffs are often regulated by governments; It has to be kept in low price to serve for every households as a necessary goods. Sources of revenue from green energy comes only from user charges. Hence it is not so much attractive for private investors. The paper is proposing a model for utilization of the tax revenue spillover of green energy supply by returning the portion of it to green energy projects in order to increase their rate of return. In addition, the paper is proposing a social community based funding scheme for smaller scale green projects (e.g. solar and wind). The paper theoretically and empirically shows that utilizing spillover effect in form of tax return for funding green energy projects will increase the rate of return and make them feasible and interesting for the private investors.
Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/90e341ca1adfdca979e1a462189aad73b5bdd102
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In Economics and Econometrics
- Farhad Taghizadeh‐Hesary
- Naoyuki Yoshino
- Han Phoumin
- Gazi Salah Uddin
- Ahmet Sensoy
- Olivier Kraaijeveld
- J. Smedt
In Renewable Energy, Sustainability and the Environment
Citations in the corpus
- Green credit policy and firm performance: What we learn from China (2021, background): “And they encourage financial institutions to actively implement green credit and firms to reduce their own environmental risks by providing loan concessions and subsidies, taking tax return for green energy projects, establishing recognition systems, innovating environmental risk rating schemes and ”
- Analyzing the Characteristics of Green Bond Markets to Facilitate Green Finance in the Post-COVID-19 World (2021, background): “A similar idea is developed by [5], although not applied to green bonds in particular.”
- Sustainable Solutions for Green Financing and Investment in Renewable Energy Projects (2020, background): “If part of the spillover tax revenues was returned to private investors, their rate of return would increase over a prolonged period, and this could support their maintenance costs [10].”