Market-based mechanisms to promote renewable energy in Asia

Description

Market-based instruments such as Renewable Energy Certificate (REC) are increasingly favoured as an alternative to command-and-control legislation to increase the uptake of renewable energy. Focusing on the renewable energy industry and policy situation in Asia, this paper analysed the strengths and weaknesses of market-based approaches in the long-term interest of developing Asia. It found that approaches such as REC are disadvantaged by a lack of both market acceptance and a strong institutional and programme support. To identify gaps in the REC system in India, a comparative analysis with the United Kingdom (UK) model was made. This revealed some fundamental issues around market-based approaches in Asia, underscoring the need for a policy design to address the concerns of buyers and sellers in the market.

Publication Date

1-1-2015

Publisher

Economic Research Institute for ASEAN and East Asia (ERIA)

Keywords

Market-based mechanisms, Renewable energy, Renewable obligation, Regulatory intervention

Source Link URL

https://www.eria.org/publications/market-based-mechanisms-to-promote-renewable-energy-in-asia/

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