Die ökonomischen Wirkungen der Förderung Erneuerbarer Energien: Erfahrungen aus Deutschland
The allure of an environmentally benign, abundant, and cost-effective energy source has led an increasing number of industrialized countries to back public financing of renewable energies. Germany’s experience with renewable energy promotion is often cited as a model to be replicated else-where, being based on a combination of far-reaching energy and environ-mental laws that stretch back nearly two decades. This paper critically re-views the centerpiece of this effort, the Renewable Energy Sources Act (EEG), focusing on its costs and the associated implications for job creation and climate protection. We argue that German renewable energy policy, and in particular the adopted feed-in-tariff scheme, has failed to harness the market incentives needed to ensure a viable and cost-effective introduction of renewable energies into the country’s energy portfolio. To the contrary, the government’s support mechanisms have in many respects subverted these incentives, resulting in massive expenditures that show little long-term promise for stimulating the economy and protecting the environment.
Frondel, M., N. Ritter, C. Schmidt and C. Vance (2010), Die ökonomischen Wirkungen der Förderung Erneuerbarer Energien: Erfahrungen aus Deutschland. Zeitschrift für Wirtschaftspolitik, 59, 2, 107–133