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.
IEA: Feed-in Tariffs More Effective and Cheaper than Quotas for Renewable Energy
By
Paul Gipe
The International Energy Agency (IEA) has never been known as a hot bed of progressive thought–it has long been …
Ernst & Young Find Feed-in Tariffs Cheaper Than Trading System
By
Paul Gipe
The international accounting firm, Ernst & Young, has concluded that Germany’s system of feed-in tariffs delivers more renewable energy …
Certificate Trading and Feed-in Tariffs
By
Volkmar Lauber
Presentation by Volkmar Lauber explaining why Feed-in Tariffs are superior to Certificate Trading. . .
Britain’s Stern Report Says Feed Laws Work Best for Renewable Energy
By
Paul Gipe
The report by Britain’s Sir Nicholas Stern on the economics of climate change asserts that electricity feed laws, like …
European Commission: The support of electricity from renewable energy sources
By
Probably one of the more significant reports on the comparison between feed-in tariff policy and the quota model in the past decade because it clearly shows FITs are more “efficient and effective”. . .
Minimum price system compared with the Quota Model by BWE
By
In comparison to quota systems, minimum price systems clearly perform better; they do not only perform better; they are more efficient too. And all the more so when it comes to wind energy. . .
