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)
“Some of us prefer Austrian voices risen in song to ugly German threats.”
—Ernest Lehman (b. 1920)
“But often the presence of mind and energy of a person remote from the spotlight decide the course of history for centuries to come.”
—Stefan Zweig (18811942)
“We aim above the mark, to hit the mark. Every act hath some falsehood of exaggeration in it.”
—Ralph Waldo Emerson (1803–1882)