Feed-in Tariffs The Economic Case

Feed-in Tariffs–The Economic Case

There are a number of myths surrounding Feed-in Tariffs (FITs) and how they work because FITs fly in the face of conventional neoliberal economic policy. In conventional neoliberalism, the market sets the price. In FITs, price is set administratively and the market determines the volume. FITs are a market mechanism that can create rapid growth without subsidies and other incentives. Setting prices administratively is nothing new. Electricity prices have been set administratively–and still are–in most countries for a century or more. The links below touch on this and related issues.

Feed-in Laws Background on FITs -Primers on FITs -FAQ on FITs -Model FIT Policies FITS–The Economic Case -Debunking FIT Myths Books on FITs

Feed-in Tariffs (FITs) have come under fire of late, being criticized variously as “subsidies,” and “unfunded liabilities.” This Analytical Brief dispels a few common misconceptions

January 31, 2010

Toby Couture

Deutsche Bank: Paying for Renewable Energy: TLC at the Right Price

November 30, 2009

Mark Fulton

Germany in particular stands out and is able to demonstrate many benefits that come with a strong volume response while being responsive to significant market developments. In a North American context, the province of Ontario has many features of a strong policy design. . .