Renewable Energy Promotion: Usual Claims and Empirical Evidence - Green Energy and Efficiency: An Economic Perspective - page 327

Renewable Energy Promotion: Usual
Claims and Empirical Evidence

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Abstract Given the alleged environmental and socioeconomic bene ts of elec-

tricity from renewable energy sources (RES-E), their public promotion has become
a policy priority for governments all over the world in the past. However, in those
countries with an already large penetration of renewable energy in their electricity
mix, there is substantial concern about the policy costs of support for RES-E.
Limiting those costs has also become a policy priority both for developed and
developing countries. Academia has tried to respond accordingly, and there is
already a voluminous literature on the analysis of the effectiveness and cost-
effectiveness of RES-E support. This literature has been both theoretical and
empirical. The later has been based on different methodologies, including case
studies and model simulations. However, there are still some general claims which
are largely unsupported with empirical data. Other statements are at least arguable
or refutable on theoretical grounds. Based on a throughout review of the theoretical
and empirical literature, the aim of this chapter is to discuss some usual claims
about renewable energy promotion. The results of the analysis suggest fruitful
avenues for further research on the topic.

1 Introduction

Given the alleged environmental and socioeconomic bene ts of electricity from

renewable energy sources (RES-E), their public promotion has become a policy
priority for governments all over the world [ 1 ]. Although, in general, private
generation costs are higher for renewable than for conventional electricity, the
former provides bene

ts translate
into a generally lower social cost (inclusive of private costs plus negative external

ts that are not valued by the market. Those bene