@article{Marschinski:190626,
      recid = {190626},
      author = {Marschinski, Robert and Quirion, Philippe},
      title = {Tradable Renewable Quota vs. Feed-In Tariff vs. Feed-In  Premium under Uncertainty},
      address = {2014-11-28},
      number = {830-2016-55312},
      series = {ERM},
      pages = {37},
      month = {Nov},
      year = {2014},
      abstract = {We study the performance under uncertainty of three  renewable energy policy instruments: Tradable Renewable  Quota (TRQ), Feed-In-Tariff (FIT), and Feed-In-Premium  (FIP). We develop a stylized model of the electricity  market, where renewables are characterized by a positive  learning externality, which the regulator aims to  internalize. Assuming shocks on the fossil-based  electricity supply, renewables supply, or on total  electricity demand, we analytically derive the conditions  determining the instruments’ relative welfare ranking.  Although we generally confirm the key role of the slopes of  marginal benefits and costs associated with the policy, the  specific ranking depends on which type of uncertainty is  considered, and whether shocks are permanent or transitory.  However, a high learning rate generally favours the FIT,  while TRQ is mostly dominated by the other two instruments.  These results are confirmed in a numerical application to  the US electricity market, in which the FIP emerges as the  most and TRQ as the least robust overall choice.},
      url = {http://ageconsearch.umn.edu/record/190626},
      doi = {https://doi.org/10.22004/ag.econ.190626},
}