The Experts below are selected from a list of 261 Experts worldwide ranked by ideXlab platform
Frank Verboven - One of the best experts on this subject based on the ideXlab platform.
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Subsidies and Time Discounting in New Technology Adoption: Evidence from Solar Photovoltaic Systems
American Economic Review, 2019Co-Authors: Olivier De Groote, Frank VerbovenAbstract:We study a generous program to promote the adoption of solar photovoltaic (PV) systems through subsidies on future electricity production, rather than through upfront Investment subsidies. We develop a tractable dynamic model of new technology adoption, also accounting for local market heterogeneity. We identify the discount factor from demand responses to variation that shifts expected future but not current utilities. Despite the massive adoption, we find that households significantly discounted the future benefits from the new technology. This implies that an upfront Investment Subsidy program would have promoted the technology at a much lower budgetary cost.
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Subsidies and myopia in technology adoption: evidence from solar photovoltaic systems
SSRN Electronic Journal, 2016Co-Authors: Olivier De Groote, Frank VerbovenAbstract:Many countries have relied on subsidies to promote the adoption of renewable energy technologies. We study a generous program to promote the adoption of solar photovoltaic (PV) systems through subsidies on future electricity production, rather than through upfront Investment subsidies. We develop and estimate a tractable dynamic model of technology adoption, also accounting for local market heterogeneity. We exploit rich variation at pre-announced dates in the future production subsidies. Although the program led to a massive adoption, we find that households significantly undervalued the future benefits from the new technology. This implies that an upfront Investment Subsidy program would have promoted the technology at a much lower budgetary cost, so that the government essentially shifted the Subsidy burden to future generations of electricity consumers.
J Aguilera - One of the best experts on this subject based on the ideXlab platform.
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the internal rate of return of photovoltaic grid connected systems a comprehensive sensitivity analysis
Renewable Energy, 2010Co-Authors: D.l. Talavera, Gustavo Nofuentes, J AguileraAbstract:At present, photovoltaic grid-connected systems (PVGCS) are experiencing a formidable market growth. This is mainly due to a continuous downward trend in PV cost together with some government support programmes launched by many developed countries. However, government bodies and prospective owners/investors are concerned with how changes in existing economic factors – financial incentives and main economic parameters of the PVGCS – that configure a given scenario may affect the profitability of the Investment in these systems. Consequently, not only is a mere estimate of the economic profitability in a specific moment required, but also how this profitability may vary according to changes in the existing scenario. In order to enlighten decision-makers and prospective owners/investors of PVGCS, a sensitivity analysis of the internal rate of return (IRR) to some economic factors has been carried out. Three different scenarios have been assumed to represent the three top geographical markets for PV: the Euro area, the USA and Japan. The results obtained in this analysis provide clear evidence that annual loan interest, normalised initial Investment Subsidy, normalised annual PV electricity yield, PV electricity unitary price and normalised initial Investment are ordered from the lowest to the highest impact on the IRR. A short and broad analysis concerning the taxation impact is also provided.
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the internal rate of return of photovoltaic grid connected systems a comprehensive sensitivity analysis
Renewable Energy, 2010Co-Authors: D.l. Talavera, Gustavo Nofuentes, J AguileraAbstract:At present, photovoltaic grid-connected systems (PVGCS) are experiencing a formidable market growth. This is mainly due to a continuous downward trend in PV cost together with some government support programmes launched by many developed countries. However, government bodies and prospective owners/investors are concerned with how changes in existing economic factors – financial incentives and main economic parameters of the PVGCS – that configure a given scenario may affect the profitability of the Investment in these systems. Consequently, not only is a mere estimate of the economic profitability in a specific moment required, but also how this profitability may vary according to changes in the existing scenario. In order to enlighten decision-makers and prospective owners/investors of PVGCS, a sensitivity analysis of the internal rate of return (IRR) to some economic factors has been carried out. Three different scenarios have been assumed to represent the three top geographical markets for PV: the Euro area, the USA and Japan. The results obtained in this analysis provide clear evidence that annual loan interest, normalised initial Investment Subsidy, normalised annual PV electricity yield, PV electricity unitary price and normalised initial Investment are ordered from the lowest to the highest impact on the IRR. A short and broad analysis concerning the taxation impact is also provided.
Olivier De Groote - One of the best experts on this subject based on the ideXlab platform.
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Subsidies and Time Discounting in New Technology Adoption: Evidence from Solar Photovoltaic Systems
American Economic Review, 2019Co-Authors: Olivier De Groote, Frank VerbovenAbstract:We study a generous program to promote the adoption of solar photovoltaic (PV) systems through subsidies on future electricity production, rather than through upfront Investment subsidies. We develop a tractable dynamic model of new technology adoption, also accounting for local market heterogeneity. We identify the discount factor from demand responses to variation that shifts expected future but not current utilities. Despite the massive adoption, we find that households significantly discounted the future benefits from the new technology. This implies that an upfront Investment Subsidy program would have promoted the technology at a much lower budgetary cost.
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Subsidies and myopia in technology adoption: evidence from solar photovoltaic systems
SSRN Electronic Journal, 2016Co-Authors: Olivier De Groote, Frank VerbovenAbstract:Many countries have relied on subsidies to promote the adoption of renewable energy technologies. We study a generous program to promote the adoption of solar photovoltaic (PV) systems through subsidies on future electricity production, rather than through upfront Investment subsidies. We develop and estimate a tractable dynamic model of technology adoption, also accounting for local market heterogeneity. We exploit rich variation at pre-announced dates in the future production subsidies. Although the program led to a massive adoption, we find that households significantly undervalued the future benefits from the new technology. This implies that an upfront Investment Subsidy program would have promoted the technology at a much lower budgetary cost, so that the government essentially shifted the Subsidy burden to future generations of electricity consumers.
Leif Gustavsson - One of the best experts on this subject based on the ideXlab platform.
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Influencing Swedish homeowners to adopt district heating system
Applied Energy, 2009Co-Authors: Krushna Mahapatra, Leif GustavssonAbstract:Improved energy efficiency and greenhouse gas mitigation could be achieved by replacing resistance heaters with district heating system. In 2005, only about 8% of the Swedish detached houses had district heating system. The expansion of such systems largely depends on homeowners' adoption decisions. And, to motivate homeowners to adopt district heating, it is essential to understand their decision-making process. In this context, in June 2005 we carried out a questionnaire survey of about 700 homeowners who lived in the city of Ostersund in houses with resistance heaters (baseline survey). About 84% of the respondents did not intend to install a new heating system. Since then these homeowners were influenced by (a) an Investment Subsidy by the Swedish government to replace resistance heaters with district heating, a brine/water-based heat pump, or a biomass-based heating system and (b) a marketing campaign by the municipality-owned district heating company. This paper analyses how these two measures influenced about 78% of the homeowners to adopt the district heating system. For this purpose we carried out a follow-up survey of the same homeowners in December 2006 (resurvey). Results showed that the Investment Subsidy and the marketing campaign created a need among the homeowners to adopt a new heating system. The marketing campaign was successful in motivating them to adopt the district heating system. The marketing strategy by the district heating company corresponds to the results obtained in the baseline survey.
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an adopter centric approach to analyze the diffusion patterns of innovative residential heating systems in sweden
Energy Policy, 2008Co-Authors: Krushna Mahapatra, Leif GustavssonAbstract:Abstract Innovation and diffusion of renewable energy technologies play a major role in mitigation of climate change. In Sweden replacing electric and oil heating systems with innovative heating systems such as district heating, heat pumps and wood pellet boilers in detached homes is a significant mitigation option. Using an adopter-centric approach, we analyzed the influence of Investment Subsidy on conversion of resistance heaters and oil boilers, and the variation in diffusion pattern of district heating, heat pumps and pellet boilers in Swedish detached homes. Results from questionnaire surveys of 1500 randomly selected homeowners in September 2004 and January 2007 showed that more than 80% of the respondents did not intend to install a new heating system. Hence, about 37% of the homeowners still have electric and oil heating systems. The government Investment Subsidy was important for conversion from a resistance heater, but not from an oil boiler. This is because homeowners currently replacing their oil boilers are the laggards, while those replacing resistance heaters are the ‘early adopters’. Economic aspects and functional reliability were the most important factors for the homeowners when considering a new heating system. There is a variation in the perceived advantages associated with each of the innovative heating systems and therefore, the diffusion patterns of such systems vary. Installers and interpersonal sources were the most important communication channels for information on heating systems.
Xian Zhang - One of the best experts on this subject based on the ideXlab platform.
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comparison of Subsidy schemes for carbon capture utilization and storage ccus Investment based on real option approach evidence from china
Applied Energy, 2019Co-Authors: Lin Yang, Yuantao Yang, Jingli Fan, Xian ZhangAbstract:Abstract This study adopts the real option approach to compare the impacts of different Subsidy schemes, including initial Investment Subsidy, electricity tariff Subsidy, and CO2 utilization Subsidy, on the Investment benefit of carbon capture utilization and storage (CCUS) project in China under high, medium, and low coal price levels, respectively. The results show that: (1) Under the current oil price level (70 USD/bbl), CO2 utilization Subsidy referring to the 45Q Tax Credit released by the US government is high enough to trigger the Investment behavior immediately. However, the full initial Investment Subsidy needs to be replenished with other ways and the electricity tariff Subsidy needs to increase by 2.6 times compared with the current Subsidy for renewable energy (0.019 CNY/kWh). (2) The critical oil prices under full Investment Subsidy and electricity tariff Subsidy need to increase by at least 2.7% and 14.1%, respectively. (3) Both electricity tariff Subsidy and CO2 utilization Subsidy are feasible, while the former need to exceed the current Subsidy for renewable energy and the latter is more favorable in promoting the development of full-chain CCUS project and the increase of oil production. (4) The optimal Investment timing can be brought forward to 2023 if the technological learning rate reaches 30% under the low coal price level; the investors should abandon the project until the technological learning rates reach 5% and 10% under the medium and high coal price levels, respectively. Overall, our results enable to provide useful information for the policy-makers to formulate Subsidy policies.
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evaluating the effect of a Subsidy policy on carbon capture and storage ccs Investment decision making in china a perspective based on the 45q tax credit
Energy Procedia, 2018Co-Authors: Jingli Fan, Xian Zhang, Shijie Wei, Ping Zhong, Yang Yang, Hang WangAbstract:Abstract A trinomial tree model based on the delay real option is developed to evaluate the carbon capture and storage (CCS) retrofitting Investment for existing coal-fired power plants in the context of the 45Q tax credit. The uncertainties regarding the carbon price, the CCS retrofitting Investment cost, the operation and maintenance (O&M) cost, the CCS Investment Subsidy scenarios, and the allocation ratio of the carbon dioxide (CO2) storage Subsidy between the coal-fired power plants and CO2 storage enterprises are taken into consideration. The results show that if the allocation ratio of the CO2 storage Subsidy for coal-fired power plants is zero, the full government Subsidy for the initial CCS Investment cost and clean electricity tariff (0.015 CNY/kWh) are not sufficiently attractive for the coal-fired power plants to invest in CCS and the critical allocation ratio is 17.8% in this case. The critical allocation ratio increases to 26.4% if the government Subsidy for the initial CCS Investment cost is zero. Moreover, if the government Subsidy for the initial CCS Investment cost and clean electricity tariff are both canceled, the coal-fired power plants need to receive at least 33.3% of the CO2 storage Subsidy to invest in CCS. The results provide theoretical support for the decision-making regarding CCS retrofitting Investment and CCS Subsidy policy-making.
