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Feed-In Tariff: An Effective Policy to Deploy Renewables

Feed-In Tariff: An Effective Policy to Deploy Renewables

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Published by Carlos Rymer

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Categories:Types, Research, Science
Published by: Carlos Rymer on May 14, 2009
Copyright:Attribution Non-commercial

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05/11/2014

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Feed-In Tariff: An Effective Policy To DeployRenewable Energy Technologies
Carlos Rymer Cornell UniversityMay, 2008
 
1
Executive Summary
Peak oil and climate change have become major problems for society. Theincreasing price of oil and the effects of climate change are significantly burdeningthe world’s pursuit of economic growth. As a result, the world is quickly movingaway from fossil fuels and taking advantage of renewable sources of energy. Witha fast-growing renewable energy industry, it is possible for the world tosignificantly reduce its dependence on fossil fuel this century and reduce or eveneliminate greenhouse gases. To deploy renewable energy technologies, the feed-intariff has risen as the most effective policy to equitably and efficiently promoterenewable energy development. This is particularly true for countries highlydependent on oil imports, such as small island states. As the world shifts itstransportation infrastructure to electricity-based energy, renewable electricity promoted by feed-in tariffs will become more important. Already spreading aroundthe world rapidly, the feed-in tariff therefore has the potential to be one of the key policy tools used to shift the world’s energy mix away from fossil fuels and torenewable energies to address energy security, climate change, and economicgrowth.
 
2
Contents
Peak Oil and Climate Change: Motivators for Renewables
.....................3
Peak Oil
.............................................................................................................. 3
Climate Change
................................................................................................... 5
Overview of Renewable Energy Sources………………..
.......................9
Biodiesel
............................................................................................................. 9
Biomass
............................................................................................................ 10
Ethanol
.............................................................................................................. 11
Geothermal
....................................................................................................... 12
Hydro
................................................................................................................ 13 
Ocean
................................................................................................................ 14 
Solar 
.................................................................................................................. 15
Wind
................................................................................................................. 18
The Feed-In Tariff 
................................................................................. 20
Additional Policy Options
..................................................................... 25
Cap-and-Trade
.................................................................................................. 25
Carbon Taxes
.................................................................................................... 27
Renewable Portfolio Standards
......................................................................... 29
Tax Incentives
................................................................................................... 30
Feed-In Tariffs Around the World
......................................................... 32
The Case for Oil-Importing Countries
................................................... 34
Application in the Caribbean
................................................................. 36
Conclusion
............................................................................................ 38
References
............................................................................................. 39
 

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