Effectiveness of The German Renewable Energy Act
Various studies, including EC's study reveal that because the feed-in tariff provides financial certainty, it is more cost effective and less bureaucratic than other support schemes such as investment or production tax credits, quota based renewable portfolio standards (RPS), and auction mechanisms.(EC, 2005; Morris, 2007; Butler & Neuhoff, 2008)
The economic outcome of the EEG for Germany has been impressive. According to the Green Energy Act Alliance, 2011, the net benefit of the EEG exceeds the additional costs of initial investment - by 3.2 billion Euros. Building a safe and clean power supply incurs costs. However, Krewitt and Nitsch (2001) compared the external costs avoided in the German energy system to the compensation to be paid by grid operators for electricity from renewable energies and found that results clearly indicate that the reduced environmental impacts and related economic benefits outweigh by far the additional costs for the compensation of electricity from renewable energies.
In addition, the feed-in tariff generates more competition, more jobs and more rapid deployment for manufacturing, and does not pick technological winners, such as more mature wind power technology versus solar photovoltaics technology (EC, 2005; Morris, 2007; Butler & Neuhoff, 2008).
Read more about this topic: German Renewable Energy Act
Famous quotes containing the words effectiveness of, german, energy and/or act:
“The effectiveness of our memory banks is determined not by the total number of facts we take in, but the number we wish to reject.”
—Jon Wynne-Tyson (b. 1924)
“The French courage proceeds from vanity—the German from phlegm—the Turkish from fanaticism & opium—the Spanish from pride—the English from coolness—the Dutch from obstinacy—the Russian from insensibility—but the Italian from anger.”
—George Gordon Noel Byron (1788–1824)
“Because humans are not alone in exhibiting such behavior—bees stockpile royal jelly, birds feather their nests, mice shred paper—it’s possible that a pregnant woman who scrubs her house from floor to ceiling [just before her baby is born] is responding to a biological imperative . . . . Of course there are those who believe that . . . the burst of energy that propels a pregnant woman to clean her house is a perfectly natural response to their mother’s impending visit.”
—Mary Arrigo (20th century)
“To act collectively is according to the spirit of our institutions.”
—Henry David Thoreau (1817–1862)