The Main Support Mechanisms to Finance Renewable Energy Development
By Shahrouz Abolhosseini, Almas Heshmati. Social Science Research Network, 2014
230 citations recorded by the source corpus.
Considering that the major part of greenhouse gases is carbon dioxide, there is a global concern aimed at reducing carbon emissions. Additionally, major consumer countries are looking for alternative sources of energy to avoid the impact of higher fossil fuel prices and political instability in the major energy supplying countries. In this regard, different policies could be applied to reduce carbon emissions, such as enhancing renewable energy deployment and encouraging technological innovation and creation of green jobs. There are three main support mechanisms employed by governments to finance renewable energy development programs: feed-in-tariffs, tax incentives, and tradable green certificates. Considering that many of the promising technologies to deploy renewable energy require investment in small-scale energy production systems, these mechanisms could be used to enhance renewable energy development at the desired scale. Employing a carbon emission tax or emission trading mechanism could be considered ideal policies to mitigate emissions at the lowest cost. The comparison of feed-in-tariffs and renewable portfolio standard policies showed that the former is good when a policy to develop renewable energy sources with a low level of risk for investors is considered. However, the latter is an appropriate policy when a market view policy is applied by the government.
Subfields: Economics and Econometrics, Finance, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/d2805b2aca203f551434ea5d669c7fa841068bfa
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Citations in the corpus
- How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective (2019, background): “Although theoretically optimal if stringently implemented globally, the direct empirical link between an ETS and RE deployment remains weak [76,111].”
- Financial Resources for the Circular Economy: A Perspective from Businesses (2019, background): “The aim of increasing the contribution of renewable sources to the total energy supply is of worldwide importance to mitigate the negative energy effects of climate change [72].”
- Bond financing for renewable energy in Asia (2016, background): “Abolhosseini and Heshmati (2014) argued that feed-in-tariff could be useful to reduce the risks to investors for RE projects.”
- A Review of the Circular Economy and its Implementation (2016, unknown): “Abolhosseini and Heshmati (2014) and Heshmati et al. (2015) discuss the development of renewable energy sources and their significance for the environment.”