How Fit are Feed-in Tariff Policies? Evidence from the European Wind Market

Zhang, Fan

World Bank, Washington, DC

关键词: ALTITUDE;    ANNUAL WIND GENERATION;    AVAILABILITY;    BALANCE;    BIDDING;   

DOI  :  10.1596/1813-9450-6376
RP-ID  :  WPS6376

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Feed-in tariffs have become the mostwidely used policy instrument to promote renewable energydeployment around the world. This paper examines therelation between tariff setting and policy outcome based onwind capacity expansion in 35 European countries over the1991-2010 period. Using a dynamic panel data model, itestimates the long-run elasticity of wind deployment withrespect to the level of feed-in support. The analysis findsthat higher subsidies do not necessarily yield greaterlevels of wind installation. Non-economic barriers andrent-seeking may have contributed to the weak correlation.On the other hand, the length of feed-in contract andguaranteed grid access are important determinants of policyeffectiveness. A one-year extension of an original 5-yearagreement on average increases wind investment by 6 percentannually, while providing an interconnection guaranteealmost doubles wind investment in one year.