Work detail

Analysis of the renewable energy support schemes in the EU: Can be an ECOlogical also an ECOnomical?

Author: Mgr. Senta Andoková
Year: 2015 - summer
Leaders: doc. Ing. Tomáš Cahlík CSc.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: Slovak
Pages: 99
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/150914/
Abstract: The study compares FIT (Feed-in tariff) and RPS (Renewable Portfolio Standard) as
the two most commonly used support schemes for renewable energy sources (RES) in
the EU. It examines a relationship of an Environmental Kuznets Curve (EKC) and by
a practical experiment for public lighting in Prague the study proposes an ecological
functioning of electricity grids in the EU with CO2 emissions reduction effect. The
main contribution lies in the recency and originality of the econometric analysis and
practical experiment. FIT and RPS analysis demonstrates that both schemes affect
demand for electricity and increase its price. The econometric model was tested for 28
EU countries for 1990-2013. The results say that the EU is currently located on the
downslope of the inverted U-shaped EKC with a turning point, after which the
dependence begins to grow. Nevertheless, for the most of observations the turning
point is too far to be a source of concern. Practical experiment has shown that
installation of energy saving devices for electricity grids in the EU can bring
satisfactory results in reducing CO2 emissions independently of state aid. More
efficient use of existing energy sources, however, should rather serve as
a complement to conventional support, phasing out with the development of RES
technologies.

Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance