Analysis of the policies and measures for promoting electricity from renewable energy sources using Applied General Equilibrium Model

Abstract

Renewable energy (Solar power, Wind Power, Biomass, etc) is a power generation system which does not discharge carbon dioxide in process of power generation, and in order to consider as what can build sustainable energy system, it attracts attention as an effective means. In European Union and the United States, various policies for making renewable energy spread in electricity market is implemented focusing mainly on obligation of acquisition of the electric power generated by renewable energy in. This paper, through overview of the renewable-energy spread policy of some countries, analyzes and evaluates the effect and economical influence by the promotion policy for the photovoltaics and the wind power to which spread of the future is expected. The economical influences of measures toward the spread of renewable energy are verified analyzed by using the applied general equilibrium model. As a result, the introduction on the renewable energy is influenced by the investment subsidy to the renewable energy, which source is revenue of a carbon tax, and the change of the demand characteristic (consuming structure) accompanied by the increase of green consumers.