Sep 21, 2013

Articles in journals

St. Aubyn, M., Proença, S

38

9

Feed-in tariffs have been the main policy instrument applied in Portugal for the promotion of electricity produced from renewable energy sources under the EU Directives on energy and climate regulation. In this paper, we provide an empirical impact assessment of the economic and environmental effects of Portugal's FITs policy to promote RES-E generation. Impact assessment of policy instruments plays a crucial role on decision-making process. For numerical simulations, we make use of a hybrid top-down/bottom-up general equilibrium modeling approach, which represents a reliable tool to analyze the complex interactions between economic, energy, and environmental issues related to energy policies. Numerical simulations confirm the empirical evidence that the FITs policy implemented by Portugal was both an effective and a cost-efficient way to increase the generation of electricity from renewable energy sources and thus to achieve the national RES-E target of 45% in 2010. Results show relatively modest macroeconomic impacts indicating potentially low economic adjustment costs. From an environmental perspective, the deployment of renewable energy source results in significant carbon emissions reductions.

Feed-in tariffs (FITs),RES-E promotion,Energy-climate policy analysis,Hybrid CGE modeling,Portugal,