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Multiple quota markets for renewable energy: Balancing efficiency and the risk of a technological lock-in
Project funded by own resources |
Project title |
Multiple quota markets for renewable energy: Balancing efficiency and the risk of a technological lock-in |
Principal Investigator(s) |
Krysiak, Frank Christian
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Co-Investigator(s) |
Lechthaler-Felber, Giulia
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Organisation / Research unit |
Departement Wirtschaftswissenschaften / Umweltökonomie (Krysiak) |
Project start |
01.01.2012 |
Probable end |
31.12.2013 |
Status |
Completed |
Abstract |
To increase the share of renewables in energy supply, quota markets and feed-in tariffs are the most discussed (and used) instruments of environmental policy. They differ regarding their impact on technological progress. Whereas feed-in tariffs neutralize any competition between different technologies, only the currently best technologies survive in a quota market. From the perspective of technological progress, both instruments are suboptimal; quota markets easily result in a lock-in (only the currently best technology is used and developed, regardless of the potential of other technologies) and feed-in tariffs lead to a continued development of inferior technologies. In this project, we analyze a system of multiple quota markets (e.g., a markets for new and a market for more mature technologies) with regard to its potential of inducing an ex-ante efficent development of different technologies. To this end, we develop a new model of technological progress under uncertainty and analyze this system of multiple quota markets in the context of this model. |
Keywords |
Renewable energy, tradable permits, technological progress, uncertainty |
Financed by |
University funds
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26/04/2024
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