Journal
EMPIRICAL ECONOMICS
Volume 46, Issue 4, Pages 1339-1383Publisher
PHYSICA-VERLAG GMBH & CO
DOI: 10.1007/s00181-013-0728-z
Keywords
Income distribution; Redistribution; Tax incidence; Renewable resources; Energy policy; Feed-in tariff; Germany
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This article assesses the redistributive effects of a key element of German climate policy, the promotion of renewables in the electricity generation mix through the provision of a feed-in tariff. The tariff shapes the distribution of households' disposable incomes by charging a levy that is proportional to household electricity consumption and by transferring financial resources to households who are feeding green electricity into the public grid. Our study builds on representative household survey data, providing information on various socio-demographics, household electricity consumption, and ownership of photovoltaic facilities. The redistributive effects of the feed-in tariff are evaluated by means of inequality indices. All the indices indicate that Germany's feed-in tariff is regressive.
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