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)
“How much atonement is enough? The bombing must be allowed as at least part-payment: those of our young people who are concerned about the moral problem posed by the Allied air offensive should at least consider the moral problem that would have been posed if the German civilian population had not suffered at all.”
—Clive James (b. 1939)
“Violence among young people ... is an aspect of their desire to create. They don’t know how to use their energy creatively so they do the opposite and destroy.”
—Anthony Burgess (b. 1917)
“Predictions of the future are never anything but projections of present automatic processes and procedures, that is, of occurrences that are likely to come to pass if men do not act and if nothing unexpected happens; every action, for better or worse, and every accident necessarily destroys the whole pattern in whose frame the prediction moves and where it finds its evidence.”
—Hannah Arendt (1906–1975)