The effect of the feed-in-system policy on renewable energy investments: Evidence from the EU countries


We study the effect of the Feed-in-System (FIS) policy on wind and solar photovoltaic energy investments in the European Union (EU), over the time period between 1992 and 2015, considering the heterogeneity of the policies and market conditions across the EU countries. We develop a FIS subsidy performance indicator that distinguishes feed-in-tariff (FIT) from feed-in-premium (FIP) and considers other important aspects of each of these contracts, such as the duration, tariff price, energy spot price and production costs, as well as the market conditions. We conclude that the mere existence of the FIS policy does not necessarily enhance renewable energy investments, it depends on the type of the FIS contract and its features, and may vary across the different sources of renewable energy. Some of our findings are new to the literature and can have important implications in the development of new public investment incentives to promote renewable energy.

Publication DOI:
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School > Centre for Personal Financial Wellbeing
Additional Information: © 2020, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
Uncontrolled Keywords: European union,Feed-in-System,Feed-in-Tariff,Renewable energy,Solar photovoltaic,Wind energy,Economics and Econometrics,General Energy
Publication ISSN: 1873-6181
Last Modified: 15 Jul 2024 08:09
Date Deposited: 06 Nov 2020 10:11
Full Text Link:
Related URLs: https://linking ... 140988320303388 (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2020-10-28
Published Online Date: 2020-10-28
Accepted Date: 2020-10-15
Authors: Alolo, Mutaka
Azevedo, Alcino (ORCID Profile 0000-0002-4751-6085)
El Kalak, Izidin

Export / Share Citation


Additional statistics for this record