Renewable Energy Promotion with Economic Incentives: The Case of the EU

Abstract

The paper investigates the economic ways of green energy promotion in the European Union. It is stated that environmental friendliness and economic expediency are the main drivers of renewable energy development. The paper emphasizes that the EU has significant achievements in green energy promotion. The EU encourages the use of renewables in a variety of ways, including tariff and non-tariff instruments. In the research different economic incentives are classified by certain criteria. It is outlined in the research that the feed-in tariff was the first and most widely used mechanism of support for green energy producers. At the same time, it is gradually being replaced by a feed-in premium (a system of allowances for additional generation). The paper also highlights the importance of non-tariff instruments, including tax incentives, green certificate system, investment grants, and subsidies.