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New paper on renewable energy policies in federal government systems

Meya, J.N., and Neetzow, P. (2019). Renewable energy policies in federal government systems, Oldenburg Discussion Papers in Economics, V-423-19.

 

The paper analyses the overlapping promotion of renewable energies (RE) by several levels of government (e.g. federal and state governments). It shows that incentives to promote renewable energy at the decentralised level are reversed if either a fixed feed-in tariff or auctions are used as instruments at the central level. Countries that have a relatively large share in the financing of the federal subsidy reduce their own subsidy beyond the cost-efficient amount for a central feed-in tariff and increase it for a central auction. The paper applies the theoretical results to the reform of the Renewable Energy Sources Act of 2017 in Germany.