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The International Energy Agency (IEA) advises its 28 member countries on sound energy policy, which seeks to balance energy security, economic growth and environmental concerns. The IEA Energy Papers offer in-depth investigation of energy topics, and explore emerging issues and challenges in the energy sector. These papers will be of much interest to energy experts, policy makers, industry and the general public.
Interactions of Policies for Renewable Energy and Climate
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- Cédric Philibert1
- Author Affiliations
- 1: International Energy Agency, France
- 01 Mar 2011
- Bibliographic information
This paper explores the relationships between climate policy and renewable energy policy instruments. It shows that, even where CO2 emissions are duly priced, specific incentives for supporting the early deployment of renewable energy technologies are justified by the steep learning curves of nascent technologies. This early investment reduces costs in the longer term and makes renewable energy affordable when it needs to be deployed on a very large scale to fully contribute to climate change mitigation and energy security. The paper also reveals other noteworthy interaction effects of climate policy and renewable policy instruments on the wholesale electricity prices in deregulated markets, which open new areas for future research.