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Ambec, Stefan
and Crampes, Claude
(2019)
Decarbonizing electricity generation with intermittent sources of energy.
Journal of the Association of Environmental and Resource Economists, vol. 6 (n° 6).
pp. 919-948.
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Abstract
We examine policy instruments that aim to decarbonize electricity production by replacing fossil fuel energy with intermittent renewable sources, namely, wind and solar power. We consider a model of investment, production, and storage with two sources of energy: one is clean but intermittent (wind or solar), whereas the other one is reliable but polluting (thermal power). We first determine the first-best energy mix depending on the social cost of polluting emissions. We then show that, to implement the socially efficient energy mix without a carbon tax, feed-in tariffs and renewable portfolio standards must be complemented with a price cap and volume-limited capacity payments.
| Item Type: | Article |
|---|---|
| Language: | English |
| Date: | November 2019 |
| Refereed: | Yes |
| Uncontrolled Keywords: | electricity, renewables, intermittency, storage, feed-in tariff, carbon emissions. |
| JEL Classification: | D24 - Production; Cost; Capital and Total Factor Productivity; Capacity D61 - Allocative Efficiency; Cost-Benefit Analysis Q41 - Demand and Supply Q42 - Alternative Energy Sources Q48 - Government Policy |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 27 May 2019 08:08 |
| Last Modified: | 18 Nov 2021 08:40 |
| OAI Identifier: | oai:tse-fr.eu:123011 |
| URI: | https://publications.ut-capitole.fr/id/eprint/32497 |
Available Versions of this Item
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Decarbonizing electricity generation with intermittent sources of energy. (deposited 05 Nov 2015 15:10)
- Decarbonizing electricity generation with intermittent sources of energy. (deposited 27 May 2019 08:08) [Currently Displayed]
