Abstract
Overall effectiveness of the subsidy policy applied by the EU in the area of renewable energy in the first decade of the 21st century was assessed. The case study involved three renewable energy sources who received the subsidies. The detailed analysis of economic efficiency presented here was built on real cash flows data and holistic assessment of the externalities. The applied criteria of financial efficiency were as follows: the simple payback period, rate of return and net present value. Based on the results of the last given criterion the newly proposed indicator of effective subsidy policy was constructed. Its contribution lies in the fact that it allows to formulate recommendations regarding the effective management of subsidies to the maximum possible extent in the case of a limited amount of resources. In addition, this indicator assesses the effectiveness of the subsidy policy of projects of this kind more accurately than methods used so far. Finally, it is recommended rather to prevent failures of the market, in order to completely abolish the subsidies.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Almus M, Czarnitzki D (2012) The effects of public R&D subsidies on firms’ innovation activities. J Bus Econ Stat 21:226–236
Brander JA (1985) Export subsidies and international market share rivalry. J Int Econ 18:83–100
Brealey RA, Myers SC, Marcus AJ (2011). Fundamentals of Corporate Finance (7th Rev.Ed). Mcgraw-Hill Education, United States of America
Faaij APC (2006) Bio-energy in Europe: changing technology choices. Energ Policy 34:322–342
Fouquet D, Johansson TB (2008) European renewable energy policy at crossroads: focus on electricity support mechanisms. Energ Policy 36:4079–4092
Frondel M, Schmidt CM, Ritter N, Vance C (2010) Economic impacts from the promotion of renewable energy technologies: the German experience. Energ Policy 38:4048–4056
González X, Jaumandreu J, Pazó C (2005) Barriers to innovation and subsidy effectiveness. RAND J Econ 36:930–950
Haas R, Eichhammerb W, Hubera C, Langnissc O, Lorenzonid A, Madlenere R, Menanteauf P, Morthorstg PE, Martinsh A, Oniszki A, Schleichb J, Smithj A, Vassk Z, Verbruggenl A (2004) How to promote renewable energy systems successfully and effectively. Energ Policy 32:833–839
Hašková S, Kolář P (2012) The mathematic modeling of process economization of natural resources. China-USA Business Review 12(2):122-129. ISSN 1537-1514
Maroušek J (2013) Pretreatment of sunflower stalks for biogas production. Clean Technol Env Policy 15:735–740
Maroušek J, Kawamitsu Y, Ueno M, Kondo Y, Kolář L (2012) Methods for improving methane yield from rye straw. Appl Eng Agric 28:1–9
Reiche D, Bechberger M (2004) Policy differences in the promotion of renewable energies in the EU member states. Energ Policy 32:843–849
Segerstrom PS (1991) Innovation, imitation and economic growth. J Polit Econ 99:807–815
Tornell A, Lane PR (1999) The voracity effect. Am Econ Rev 89:22–46
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Maroušek, J., Hašková, S., Zeman, R. et al. Assessing the implications of EU subsidy policy on renewable energy in Czech Republic. Clean Techn Environ Policy 17, 549–554 (2015). https://doi.org/10.1007/s10098-014-0800-1
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10098-014-0800-1