Abstract
This chapter introduces the economics of renewable energy supply. It covers the economics of renewable electricity supply and that of bio-fuels and presents the commonly used support mechanisms . The concerns for level-playing field for renewable energies and the cost barriers are also discussed.
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Notes
- 1.
There is a variation in the biofuel production data between OECD-FAO and IEA reports. According to IEA (2017c), the biofuel production reached 136.5 billion litres in 2016.
- 2.
External costs are covered in another chapter.
- 3.
See the paper by Kennedy (2005) for an application of this method.
- 4.
A well-developed body of literature exists in this area covering alternative Support Mechanisms and their application to specific technologies or countries. See for example ITP (2014), REN21 (2017), Menanteau et al. (2003), Sawin (2004), Mitchell et al. (2006), Del Rio and Gual (2007), Bunter and Neuhoff (2004), Dincia (2006), and World Bank (1997).
- 5.
In England and Wales, the generator can also receive its share of recycled buy-out premium and payment for levy exemption certificates in the consumer is eligible for exemption under the Climate Change Levy agreements (see Mitchell et al. 2006).
- 6.
https://www.transportpolicy.net/standard/brazil-fuels-biofuels/ (last accessed on 10th July 2018).
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Bhattacharyya, S.C. (2019). The Economics of Renewable Energy Supply. In: Energy Economics. Springer, London. https://doi.org/10.1007/978-1-4471-7468-4_8
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DOI: https://doi.org/10.1007/978-1-4471-7468-4_8
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