Abstract
What are the final equilibrium impacts of renewable energy investments on consumer and producer surpluses? This paper offers an approach to quantify the surplus breakdown in a market dominated by renewables and sufficient storage to counterbalance their intermittency-the Nordic electricity market. Wind power entry has strong distributional impacts: 10% market share for wind generation changes the consumer side surplus by an amount that is equivalent to a 40% decline in expenditures, at the cost of incumbents' surplus. The surplus transfer is big enough to cover the cost of subsidizing entry.
| Original language | English |
|---|---|
| Pages (from-to) | 873-900 |
| Number of pages | 28 |
| Journal | Journal of the Association of Environmental and Resource Economists |
| Volume | 7 |
| Issue number | 5 |
| DOIs | |
| Publication status | Published - 1 Sept 2020 |
| MoE publication type | A1 Journal article-refereed |
Keywords
- electricity
- renewables
- storage
- climate policies
- PASS-THROUGH
- ELECTRICITY
- MARKET
- COMPETITION
- INDUSTRY
- COSTS
- WHOLESALE
- POLLUTION
- TAX
