Regulations and Incentives

  • Contact:

    Dr. Paul Lehmann, project manager

  • Project Group:

    Dr. Paul Lehmann, Prof. Erik Gawel, Philipp Massier, Dominik Schober, Dr. Stefan Vögele, Sven Heim, Klaas Korte, Dr. Sebastian Strunz

  • Partner:

    Department of Economics, UFZ

    Industrial Economics and International Management, Centre for European Economic Research

    Systems Analysis and Technology Evaluation (IEK-STE), FZJ

    Department of Systems Analysis and Technology Assessment, DLR

Using several case studies, this project aims at analyzing the risks associated with the implementation of policy instruments. Firstly, those risks are addressed which result from conflicts between promoting renewable energies and other policy objectives relevant for the energy sector. Three aspects are examined in particular:  Issues of supply security (effects on investments in fossil-fuel plants, regulation of capacity markets and merchant transmission), ecological and social conflicts related to land use and impacts on innovation investments undertaken by firms. Secondly, light is also shed on risks arising when several policy instruments are implemented in parallel in the energy sector. Case studies analyze the policy mix in the electricity, heat and transportation sector. Each case study is meant to assess the existing risks and derive recommendations for policy reform. Case study analyses are carried out using primarily economic approaches, for example, from energy, environmental, industrial, innovation and institutional economics. The methodologies employed are quite heterogeneous and selected according to the needs of each case study. Qualitative as well as quantitative tools are used.