Feed-in tariffs with minimum price guarantees and regulatory uncertainty

• Tipo: Artigo em Revista Científica Internacional
• Data: 2018

Autores

Barbosa, L (Autor) Outra; Ferrao, P (Autor) Outra; Rodrigues, Artur (Autor) FEP; Sardinha, A (Autor) Outra

Revista

Título: Energy Economics

Vol. 72

Páginas: 517-541

ISSN: 0140-9883

Editora: Elsevier

Indexação

ISI Web of Knowledge - 26 Citações

Scopus - 29 Citações

Outras Informações

ID Authenticus: P-00P-HJ0

DOI: 10.1016/j.eneco.2018.04.028

Abstract (EN): The feed-in tariff (FIT) program is a popular policy for incentivizing new renewable energy projects because it establishes a long-term contract with renewable energy investors. This paper presents a novel model to analyze a FIT contract with a minimum price guarantee (i.e., a price-floor regime) from an investor's perspective. The results show that a perpetual guarantee only induces investment for prices below the price floor when offering a risk-free investment opportunity. In contrast, the finite guarantee may induce investment even when the revenue from the guarantee is lower than the investment cost. When an investor faces a scenario with regulatory uncertainty, a higher and more likely reduction in the price floor induces earlier investment. For all cases, investors postpone an investment decision when market conditions present a higher price volatility.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Notas: O professor publicou com afiliação à U.Minho

Nº de páginas: 25