| 来源类型 | Research papers
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| 规范类型 | 报告
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| A Study on Interactions of Mandatory Energy-saving and Emission-cut Regulations with RPS |
| K. H. Jeong
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| 发表日期 | 2011-12-31
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| 出版年 | 2011
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| 语种 | 英语
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| 摘要 | 1. Research Purpose
In 2012, Feed-In Tariff(FIT), which has been implemented for the last ten years in Korea, will be replaced by Renewable Portfolio Standard(RPS). RPS will require 13 state-run and private power utilities with capacity of 500MW or larger to generate 4% of energy from renewable sources by 2015, and 10% by 2022.
In 2009, Korean government announced its goal of reducing greenhouse gas emissions by 30 percent below ��business-as-usual�� levels by 2020. In order for Korean government to achieve this goal, it plans to adopt GHG target management in 2012 and a cap-and-trade system in 2015.
Energy policy and environmental regulations such as GHG target management and a cap-and-trade system may influence firms' R&D investments directly or indirectly in technology improvement of energy efficiency, carbon reduction technology, and renewable energy technology.
This study ranks the incentives for both renewable energy technology R&D and carbon reduction technology R&D induced from the introduction of RPS and environmental regulations such as GHG target management and cap-and-trade system.
2. Summary
This study considers both perfect competition and imperfect competition for the final goods market and emissions market. Three different environmental policies are considered with RPS in terms of R&D incentives, emission standards, cap-and-trade system with free allocation, and cap-and-trade system with auction.
Under imperfect competition markets, emission standards and cap-and-trade system with auction attract more carbon-reduction technology R&D incentives than cap-and-trade system with free allocation. On the other hand, cap-and-trade system with free allocation gives more R&D incentives for renewable energy technology than emission standards and cap-and-trade system with auction. This yields the exact opposite result for the case of carbon-reduction technology R&D.
In the case where RPS is adopted in the perfectly competitive market and in the imperfect emission market, cap-and-trade system with auction results in higher carbon-reduction R&D incentives than both emission standards and cap-and-trade system with free allocation, while all environmental regulations considered in this study have the same R&D incentives for renewable energy technology.
For the imperfectly competitive final goods market adopting RPS with perfectly competitive emission market, emission standards result in more carbon-reduction R&D incentives than cap-and-trade system, while cap-and-trade system provides higher R&D incentives for the renewable energy technology than emission standards. Cap-and-trade system with auction provides the same R&D incentives with free allocation for both carbon-reduction technology and renewable energy technology.
For the final goods market adopting RPS and perfectly competitive emission market, the R&D incentives for both carbon-reduction technology and renewable energy technology are the same for all environmental regulations considered in this paper.
3. Policy Implications
With imperfectly competitive REC market, the results of R&D incentives for renewable energy technology could be different. Cap-and-trade system with auction may provide more R&D incentives for renewable energy technology than both cap-and-trade system with free allocation and emission standards. This is because like carbon-reduction technology R&D, renewable energy technology R&D affects the amounts of production supplied by rivals through REC market. That is, renewable energy technology R&D reduces the price of REC, hence resulting in the increase of rivals' production.
This result suggest that when a country introduces RPS and environmental regulations at the same time, the combination of RPS with cap-and-trade system with auction is the best policy mix in the sense of R&D incentives of carbon-reduction technology and renewable energy technology while pursuing the goals of RPS and environmental regulations. |
| URL | http://www.keei.re.kr/web_keei/en_publish.nsf/by_report_year/255F7978062C76A3492579AA001BD580?OpenDocument
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| 来源智库 | Korea Energy Economics Institute (Republic of Korea)
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| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/322626
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推荐引用方式
GB/T 7714 |
K. H. Jeong. A Study on Interactions of Mandatory Energy-saving and Emission-cut Regulations with RPS. 2011.
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