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Economic Impacts of Renewable Energy Production in Germany

Christoph Böhringer, Florian Landis, and Miguel Angel Tovar Reaños

Year: 2017
Volume: Volume 38
Number: KAPSARC Special Issue
DOI: 10.5547/01956574.38.SI1.cboh
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Abstract:
Over the last decade Germany has boosted renewable energy in power production by means of massive subsidies. The flip side are very high electricity prices which raise concerns that the transition cost towards a renewable energy system will be mainly borne by poor households. In this paper, we combine computable general equilibrium and microsimulation analyses to investigate the economic impacts of Germany's renewable energy promotion. We find that the regressive effects of renewable energy promotion could be attenuated by alternative subsidy financing mechanisms.



Size, Subsidies and Technical Efficiency in Renewable Energy Production: The Case of Austrian Biogas Plants

Andreas Eder and Bernhard Mahlberg

Year: 2018
Volume: Volume 39
Number: Number 1
DOI: 10.5547/01956574.39.1.aede
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Abstract:
This study estimates the efficiency of biogas plants and identifies determinants of inefficiencies. Data Envelopment Analysis is applied on a sample of 86 Austrian biogas plants for the year 2014, covering about one third of the installed electric capacity of Austrian biogas plants. We decompose technical efficiency into scale efficiency and pure technical efficiency (managerial efficiency). In a second-stage regression analysis the effects of subsidies and other variables on managerial efficiency are investigated. The main results are: i) 34% of biogas plants in our sample are technically efficient, 40% are scale efficient and 50% are managerial efficient; ii) small biogas plants (≤100 kW) are scale inefficient exhibiting increasing returns to scale; iii) production subsidies show a significant, negative relationship to managerial efficiency. The results are consistent with the hypothesis that production subsidies provide a disincentive to managerial effort of plant operators.





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