Via a discrete choice experiment, this paper documents that residential electricity consumers in Aguascalientes, Mexico, are willing to pay a premium for renewable energies as well as for the creation of green jobs. These results are particularly timely because the current Federal administration...

Subsidies to renewable energy are costly and contentious. We estimate the reduction in prices that follows from the subsidized entry of wind power in the Nordic electricity market. A relatively small-scale entry of renewables leads to a large-scale transfer of surplus from the incumbent...

Mitigation-Process Integrated Assessment Models (MP-IAMs) are used to analyze long-term transformation pathways of the energy system required to achieve stringent climate change mitigation targets. Due to their substantial temporal and spatial aggregation, IAMs cannot explicitly represent all...

Can subsidies to renewable energy effectively internalise CO2 costs in electricity production? Under current policy design it only matters that the replaced energy is dirty, but not how dirty it is. We use a modified peak-load pricing model, including variable renewable generators and the...

The cost of renewable energy technology has plunged in recent years. But the extent to which electricity consumers can benefit from the reduced costs depends on the design of renewable remuneration mechanisms. Calculations of a financing model show that the current sliding premium is leading to...

Power systems with increasing shares of wind and solar power generation have higher capital and lower operational costs than traditional technologies. This increases the importance of the cost of finance for total system cost. We quantify how renewable policy design can influence cost of finance...

The European Union has set ambitious targets for emission reduction and the penetration of renewable energy, including the electricity generation sector as one of the major emitters of CO2. After a period of subsidy-driven investments, the costs of renewables decreased strongly making...

With policies to promote power generation from renewable energy sources (RES) becoming important part of climate and energy policy worldwide, there is now considerable interest in understanding how these different market-based mechanisms affect power generating firms in practice. The existing...

Representing green industries capable of resolving environmental problems, economic growth and job creation, renewable energy industries grew considerably, especially in Europe from the beginning of the New Millennium. Faced with a dwindling global market caused by the 2008 global financial...

We develop a flexible forward contracting mechanism for renewable generators with intermittent and uncertain power supply. Such a contract allows the renewable generators to engage in forward contracts in day-ahead markets with flexible loads. In our proposed contracting mechanism, the renewable...