The Design and Sustainability of Renewable Energy Incentives : An Economic Analysis
Rapid urbanization and economic growth, new demographic trends, and climate change are key challenges that developing countries must face as they strive to meet growing energy demand. The main objectives of this study are to offer: (a) a global tax...
| Main Authors: | , , , , |
|---|---|
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/10/20345636/design-sustainability-renewable-energy-incentives-economic-analysis http://hdl.handle.net/10986/20524 |
| Summary: | Rapid urbanization and economic growth,
new demographic trends, and climate change are key
challenges that developing countries must face as they
strive to meet growing energy demand. The main objectives of
this study are to offer: (a) a global taxonomy of the
economic and financial incentives provided by renewable
support schemes and (b) an economic modeling of the
sustainability and affordability of such support schemes. In
an attempt to contribute to the lively debate, this study
provides a global taxonomy of the economic and financial
incentives provided by renewable energy (RE) support
schemes. It summarizes economic models of the sustainability
and affordability of such support schemes, alongside
operational advice on how the regulatory design may need to
be modified to minimize the impact on the budget and be
affordable to the poor, as well as how to identify and fill
the financing gap. This analytical framework: (a)
differentiates and illustrates tradeoffs among local,
regional, and national impacts, in the short and long run;
(b) captures distributional impacts (since subsidies to
cover the incremental costs of RE may have very different
beneficiaries); and (c) captures externalities and compares
(where possible) alternative projects based on equivalent
output and cost (comparing, for example, RE and energy
efficiency projects against those using fossil fuels). The
report is organized as follows: chapter one gives
introduction. Chapter two presents the analytical framework
that underpins the case studies, and provides the background
for the principal research hypothesis of this report, which
is better attention to the principles of economic analysis
and market efficiency leads to more sustainable and
effective policies. Chapter s three to ten present country
case studies for Vietnam, Indonesia, Sri Lanka, South
Africa, Tanzania, Egypt, Brazil, and Turkey. The conclusions
of the study are presented in chapter eleven. |
|---|