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ID:
115172
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| Publication |
2012.
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| Summary/Abstract |
Although wind power is currently the most efficient source of renewable energy, the cost of wind electricity still exceeds the market price. Subsidies in the form of feed-in tariffs (FIT) have been introduced in many countries to support the expansion of wind power. These tariffs are highly debated. Proponents say they are necessary to pave the way for decarbonising energy production. Opponents argue they prevent a welfare-optimal energy supply. Thus, in a case study we try to shed light on the welfare economic aspect of FIT by combining spatial modelling and economic valuation of landscape externalities of wind turbines. We show for the planning region West Saxony, Germany, that setting FIT in a welfare optimal manner is a challenging task. If set too high the production costs are overly increased, lowering social welfare. If set too low energy production targets may not be reached and/or external costs are overly increased, again lowering social welfare. Taking a closer look at the tariffs offered by the German Renewable Sources Energy Act we find for West Saxony that the tariffs quite well meet economic welfare considerations. One should note, however, that this finding might apply only to the present data set.
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| 2 |
ID:
176772
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| Summary/Abstract |
The deployment of wind power is a major contribution to the decarbonisation of societies. Yet, wind turbines can cause some negative externalities to humans and nature. These largely depend on the spatial allocation of the wind turbines. Therefore the question is how to design policies that minimise the social costs of wind power generation which are defined as the sum of production and external costs. An instrument which is used in Germany and elsewhere to control the externalities of wind turbines is the prescription of minimum distances to sensitive landscape features like human settlements and bird nests. The efficient (i.e. minimising social costs) magnitude of such minimum distances, however, depends on uncertain parameters. We apply a robustness analysis to an ecological-economic model for the assessment of the social costs of wind power deployment in order to identify policies, each defined by certain minimum distances, which are favourable within wide ranges of various uncertain parameters. In the examined study region in Germany, rather large minimum distances to nests of the red kite (a raptor bird) and moderate minimum distances to settlements turn out to be most favourable taken the considered uncertainties into account.
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