EX-POST EVALUATION OF COST EFFECTIVENESS OF RESIDENTIAL SOLAR PV DIFFUSION POLICY IN JAPAN: THE CASE OF FEED-IN TARIFF

抄録

This study estimates the net cost effectiveness of feed-in tariff (FIT) for CO2 reductions by diffusion of solar PV in Japan’s residential sector during the period from 2009q1 to 2014q1, using 47 prefectural panel data for properly excluding the contribution of capital subsidy, another large-scale diffusion policy. The results show that the net cost effectiveness of FIT was lower than the gross one by a factor of 2-3, and that FIT was less cost effective than capital subsidy primarily due to FIT’s policy costs accumulating over time, although the impact of FIT was larger than that of capital subsidy.