The interest around renewable resources is growing at a fast pace, given general worry on climate changes and the rally of fossil fuel prices. Producing energy through renewable resources plants is however not immediate for economic and technological reasons. Even in a period where the price of oil has reached its historical maximum, productivity of conventional plants is still preferable with respect to renewable plants (i.e. wind and solar). Several national governments are therefore studying incentives plans to sustain environment policies. In this paper we analyze two incentive forms: feed in tariffs and Green Certificates (GC). We develop conditions for the minimum value of GC to equate renewable resources plants to fossil fuel ones in terms of expected profits. An empirical application of the model is developed using German and Italian electricity market data.

Falbo, P., Felletti, D., Stefani, S. (2008). Incentives for Investing in Renewables. In H. Geman (a cura di), Risk Management in Commodity Markets - From shipping to agriculturals and energy (pp. 101-116). Hoboken, NJ 07030-5774 : John Wiley & Sons.

Incentives for Investing in Renewables

STEFANI, SILVANA
2008

Abstract

The interest around renewable resources is growing at a fast pace, given general worry on climate changes and the rally of fossil fuel prices. Producing energy through renewable resources plants is however not immediate for economic and technological reasons. Even in a period where the price of oil has reached its historical maximum, productivity of conventional plants is still preferable with respect to renewable plants (i.e. wind and solar). Several national governments are therefore studying incentives plans to sustain environment policies. In this paper we analyze two incentive forms: feed in tariffs and Green Certificates (GC). We develop conditions for the minimum value of GC to equate renewable resources plants to fossil fuel ones in terms of expected profits. An empirical application of the model is developed using German and Italian electricity market data.
Scientifica
Capitolo o saggio
Incentives, renewables, electricity
English
Risk Management in Commodity Markets - From shipping to agriculturals and energy
978-0-470-69425-1
Falbo, P., Felletti, D., Stefani, S. (2008). Incentives for Investing in Renewables. In H. Geman (a cura di), Risk Management in Commodity Markets - From shipping to agriculturals and energy (pp. 101-116). Hoboken, NJ 07030-5774 : John Wiley & Sons.
Falbo, P; Felletti, D; Stefani, S
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10281/4101
Citazioni
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
Social impact