This paper uses a political economy model to explain the discriminative support for some renewable technologies like photovoltaic. A two party model is used to show how subsidies for technologies that are installed by household voters can incentivise swing voters to vote for a party. It is in...

This paper argues that there are inherent trade-offs in energy policy objectives that pose frictions to the establishment of a new technology base. We ask how institutions in an evolving electricity system can be designed to best achieve policy targets that are partly conflicting. In particular,...

This paper outlines the effects of weather uncertainty on investment and operation decisions of electricity producers under a feed-in tariff and renewable quota obligation. Furthermore, this paper tries to quantify the sectoral welfare and investments risks under the different policies. For this...

The EU emissions trading system (ETS) and the promotion of renewable energy are overlapping regulations. Although the resulting early development of renewables is associated with several advantages such an overlap may violate the path of optimal abatement. Subsidies may cause a too high share of...