Promoting Solar Panel Investments: Feed-in-Tariff vs. Tax-Rebate Policies

2020 ◽  
Vol 22 (6) ◽  
pp. 1148-1164 ◽  
Author(s):  
Volodymyr Babich ◽  
Ruben Lobel ◽  
Şafak Yücel
Keyword(s):  
Problem Definition ◽  
Solar Panel ◽  
Electricity Price ◽  
Policy Implications ◽  
Solar Panels ◽  
Tariff Policy ◽  
Investment Cost ◽  
The Government ◽  
Practical Factors ◽  
Feed In Tariff

Problem definition: Governments have adopted various subsidy policies to promote investment in renewable energy sources such as rooftop solar panels. The German government uses a feed-in-tariff policy that provides a guaranteed stream of payments for each unit of electricity generated by a household. In contrast, the U.S. government uses a tax-rebate policy that reduces the initial investment cost, and the household receives the retail price for the generated electricity. In this paper, we study the key practical factors that favor one policy over the other from the perspective of the government. These factors are the heterogeneity in the generating efficiency, the variability in the electricity price, and the variability in the investment cost. Academic relevance: Unlike the previous literature on the feed-in-tariff and tax-rebate policies, we focus on the effects of variability on a household’s investment timing. We identify the optimal policy for the government to manage the aggregate household investment, accounting for the heterogeneity in efficiency. Methodology: We consider an infinite-horizon, continuous-time model where the government moves first and announces either a feed-in tariff or a tax rebate. Then each household dynamically decides if and when to invest in a unit of solar panels. The objective of the government is to maximize the expected value of a subsidy policy, that is, the difference between the societal benefit of solar panel investments and the subsidy cost over time. Results: We characterize the timing of the investment decision of the households and the optimal subsidy parameters for the government. We identify which practical factors favor the feed-in-tariff or the tax-rebate policy. Policy implications: Our results suggest that a government should prefer the feed-in-tariff policy when the electricity price is highly uncertain. Intuitively, feed-in-tariff policy eliminates the price variability; thus, it removes the strategic delay in the investment. The tax-rebate policy should be adopted if the households are heterogeneous in generating efficiency, if the investment cost is highly variable, or if the price and cost uncertainty are positively correlated.

scholarly journals The Electricity Rebound Effect: Empirical Evidence From the Chinese Chemical Industry

2022 ◽  
Vol 9 ◽  
Author(s):  
Houyin Long ◽  
Hong Zeng ◽  
Xinyi Lin
Keyword(s):  
Chemical Industry ◽  
Electricity Market ◽  
Rebound Effect ◽  
Electricity Price ◽  
Policy Implications ◽  
Chinese Government ◽  
Cost Information ◽  
Cost Share ◽  
Electricity Cost ◽  
The Government

The Chinese government has adopted many policies to save energy and electricity in the chemical industry by improving technology and reforming its electricity market. The improved electricity efficiency and the electricity reform may indirectly reduce expected energy and electricity savings by decreasing the effective electricity price and the marginal cost of electricity services. To analyze the above issues, this paper employs the Morishima Elasticity of Substitution of the electricity cost share equation which is estimated by the DOLS method. The results show that: 1) There exists a rebound effect in the Chinese chemical industry, but it is quite large because the electricity price is being controlled by the government; 2) the reform of the electricity market reduces the rebound effect to 73.85%, as electricity price begins to reflect cost information to some extent; 3) there is still a lot of space for the reform to improve, and the rebound effect could be reduced further once the electricity price is adjusted to transfer the market information more correctly. In order to succeed in saving electricity and decreasing the rebound effect in the chemical industry, the policy implications are provided from perspectives of the improved energy efficiency and electricity pricing mechanism.

scholarly journals A design of solar battery cleaning system by modularity method

2021 ◽  
Vol 327 ◽  
pp. 02007
Author(s):  
L.K. Dien ◽  
Svetlin Antonov
Keyword(s):  
Solar Energy ◽  
Development Strategy ◽  
Solar Panel ◽  
Solar Panels ◽  
Cleaning Robot ◽  
The World Bank ◽  
Compact Size ◽  
Solar Battery ◽  
Statistical Report ◽  
The Government

According to the World Bank statistical report, Vietnam has an average of 1,600-2,700 hours of sunshine and normal direct radiation averaging 4-5 kWh per square meter a day. Before 2017, solar energy was considered worthless in Vietnam's energy development strategy, but by the end of 2019, Vietnam overtook Malaysia and Thailand to become the country with the largest solar panel installation capacity in Southeast Asia. The photovoltaic projects in Vietnam has reached 5 gigawatts (GW), far exceeding from the target of 1 GW that proposed by the Government in 2020 [1]. The strong development of solar energy from industry to civil activities has led to the development of ancillary services such as installation, maintenance and commerce. To ensure the productivity, all solar panels must be cleaned to absorb solar energy as much as possible. In the paper, we mention on the design of a solar panel cleaning robot that has a compact size, easy to move through the panels, taking advantage of domestic factors to have an edge price. The highlight point in that work is our application of the modularity method to gain the best competition with the other existing products on the market.

The Problem of Agricultural Taxation in West Pakistan and an Alternative Solution: A Comment (Notes & Comments)

1973 ◽  
Vol 12 (4) ◽  
pp. 433-437
Author(s):  
Sarfaraz Khan Qureshi
Keyword(s):  
Capita Income ◽  
Agricultural Sector ◽  
Central Government ◽  
Policy Implications ◽  
Farm Size ◽  
Per Capita Income ◽  
Tax Rate ◽  
Water Rate ◽  
Per Capita ◽  
The Government

In the Summer 1973 issue of the Pakistan Development Review, Mr. Mohammad Ghaffar Chaudhry [1] has dealt with two very important issues relating to the intersectoral tax equity and the intrasectoral tax equity within the agricultural sector in Pakistan. Using a simple criterion for vertical tax equity that implies that the tax rate rises with per capita income such that the ratio of revenue to income rises at the same percentage rate as per capita income, Mr. Chaudhry found that the agricultural sector is overtaxed in Pakistan. Mr. Chaudhry further found that the land tax is a regressive levy with respect to the farm size. Both findings, if valid, have important policy implications. In this note we argue that the validity of the findings on intersectoral tax equity depends on the treatment of water rate as tax rather than the price of a service provided by the Government and on the shifting assumptions regard¬ing the indirect taxes on imports and domestic production levied by the Central Government. The relevance of the findings on the intrasectoral tax burden would have been more obvious if the tax liability was related to income from land per capita.

scholarly journals Feed-in tariff policy in Hong Kong: Is it efficient?

2021 ◽  
pp. 100056
Author(s):  
Prudence Dato ◽  
Tunç Durmaz ◽  
Aude Pommeret
Keyword(s):  
Hong Kong ◽  
Tariff Policy ◽  
Feed In Tariff

School Catchment Zone Mergers and Housing Wealth Redistribution

2021 ◽  
pp. 0739456X2110067
Author(s):  
Siu Kei Wong ◽  
Kuang Kuang Deng
Keyword(s):  
School Quality ◽  
Housing Prices ◽  
Estimation Method ◽  
Policy Implications ◽  
Housing Wealth ◽  
Housing Values ◽  
Wealth Redistribution ◽  
The Government ◽  
Empirical Design

This study investigates how perceived school quality affects housing values, using a new estimation method. Our empirical design takes advantage of the mergers of school catchment zones initiated by the government to develop quasi-experiments. We find that, in zones that gained sudden access to higher ranked schools, housing prices increased by 1.3 to 4.1 percent. Larger and more expensive houses appreciated more in response to the improvement in perceived quality of available schools. The findings generate important policy implications regarding housing wealth redistribution and housing expenditures among different households. The study also enriches the literature on the capitalization effect of school quality.

Coping with Spatial Mismatch: Subsidy Design for Electric Vehicle and Charging Markets

2021 ◽  
Author(s):  
Wei Zhang ◽  
Yifan Dou
Keyword(s):  
Electric Vehicle ◽  
Service Providers ◽  
Supply And Demand ◽  
Problem Definition ◽  
Environmental Benefits ◽  
Third Party ◽  
Theoretic Model ◽  
Spatial Mismatch ◽  
The Government ◽  
Ev Charging

Problem definition: We study how the government should design the subsidy policy to promote electric vehicle (EV) adoptions effectively and efficiently when there might be a spatial mismatch between the supply and demand of charging piles. Academic/practical relevance: EV charging infrastructures are often built by third-party service providers (SPs). However, profit-maximizing SPs might prefer to locate the charging piles in the suburbs versus downtown because of lower costs although most EV drivers prefer to charge their EVs downtown given their commuting patterns and the convenience of charging in downtown areas. This conflict of spatial preferences between SPs and EV drivers results in high overall costs for EV charging and weak EV adoptions. Methodology: We use a stylized game-theoretic model and compare three types of subsidy policies: (i) subsidizing EV purchases, (ii) subsidizing SPs based on pile usage, and (iii) subsidizing SPs based on pile numbers. Results: Subsidizing EV purchases is effective in promoting EV adoptions but not in alleviating the spatial mismatch. In contrast, subsidizing SPs can be more effective in addressing the spatial mismatch and promoting EV adoptions, but uniformly subsidizing pile installation can exacerbate the spatial mismatch and backfire. In different situations, each policy can emerge as the best, and the rule to determine which side (SPs versus EV buyers) to subsidize largely depends on cost factors in the charging market rather than the EV price or the environmental benefits. Managerial implications: A “jigsaw-piece rule” is recommended to guide policy design: subsidizing SPs is preferred if charging is too costly or time consuming, and subsidizing EV purchases is preferred if charging is sufficiently fast and easy. Given charging costs that are neither too low nor too high, subsidizing SPs is preferred only if pile building downtown is moderately more expensive than pile building in the suburbs.

Explaining Country Heterogeneity in E-Government Evolution Based on Longitudinal Analysis of Nations

2021 ◽  
Vol 12 (3) ◽  
pp. 83-95
Author(s):  
Prakrit Silal ◽  
Debashis Saha
Keyword(s):  
Longitudinal Analysis ◽  
Clustering Analysis ◽  
Policy Implications ◽  
Development Indicators ◽  
The Past ◽  
Country Level ◽  
The Government

E-government (EGOV) has emerged as an important innovation disrupting the government-citizen relationship in the past two decades. It has attracted wide attention from scholars across varied domains. However, most of these scholarly works, while richly contributing to this evolving domain, assume homogeneity and uniformity in its design, implementation, and impact. This “one size fits all” approach fails to account for the contextual richness, often culminating in a “design-reality” gap. Also, the existing literature lacks adequate investigation of EGOV heterogeneities along time. To address the lacuna, this study attempts to uncover country-level heterogeneities inherent in EGOV longitudinal evolution. Using a dataset over 2008-2018, the study performs a longitudinal clustering analysis and identifies four distinct cohorts with varying EGOV trajectories. Further, the study uncovers variations in EGOV's influence on country-level development indicators across the four cohorts. The findings help derive theoretical and policy implications while identifying avenues for future works.

Fiscal Deficit and Economic Growth in Bangladesh

2016 ◽  
Vol 62 (1) ◽  
pp. 31-42 ◽  
Author(s):  
Ebney Ayaj Rana ◽  
Abu N. M. Wahid
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Negative Impact ◽  
Political Stability ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Government Budget ◽  
The Government ◽  
The Impact ◽  
Government Budget Deficit

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country’s GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.

scholarly journals Electrical system design of solar powered electrical recreational boat for Indonesian waters

2018 ◽  
Vol 67 ◽  
pp. 04011
Author(s):  
Sunaryo Sunaryo ◽  
Adri Wirawan Ramadhani
Keyword(s):  
Solar Energy ◽  
Fossil Fuel ◽  
Electrical Power ◽  
Electrical Energy ◽  
Green Energy ◽  
Solar Panels ◽  
Electrical System ◽  
Literature Study ◽  
The Government ◽  
Solar Powered

Indonesia has more than 17,000 islands and has plenty of beautiful beaches and underwater spots which have great potential for maritime tourism. Tourism was ranked 3rd on Indonesia's foreign income and plays an important role for the country’s ecomony. Despite having potential advantages, the government has not yet maximized its efforts to develop the attractiveness of its maritime tourism. Beside the beautiful spots Indonesia is also blessed with all year long sun shine, which could be tapped as renewable and green energy as substitution to fossil fuel. Refer to these great advantages of natural resources the research was aimed to support the government’s program in developing its maritime tourism and to promote the use of green and renewable energy by designing a solar-powered tourism recreational boat which has 12 meters of length. The paper is focused on the design of solar energy and its electrical system, which includes conversion of solar energy to electrical energy and store it in the battery, the required electrical power is also predicted based on the appliances and equipment installed in the boat, the optimum attachment of solar panels on the boat structure is also calculated. All the methods and information we use are obtained from literature study, discussion with experts, and surveys to Jagur as solar-powered electric boat from Universitas Indonesia.

Sign in / Sign up

Export Citation Format

Share Document