del Rio 2007 C-B assessment of FIT in Spain

Pablo del Rio and Miguel A. Gual (2007), "An integrated assessment of the feed-in tariff system in Spain," Energy Policy 35, 994-1012.

• Time period assessed is 1999-2003
• Attempts a cost-benefit analysis of FITs for various technologies during this time period. Finds that the support costs outweigh the avoided external costs in all cases. Generation costs of wind and small hydro do not outweigh the avoided external costs. Caution against doing too much with these results, though, as many assumptions must be made to come up with the total avoided external costs.
• 1006 Table 7 has amount of electricity generated by solar, wind, sm. hydro, biomass; price of generation and average electricity prcie
• Additional burden for consumer in 2003 was 0.26 eurocents per kWh (final electricity price 3.02 eurocents per kWh)
• Despite negative cost-benefit finding, says the FIT has led to significant environmental benefits and doesn't represent excessive consumer cost - comparable to those in other countries.
• Low transaction costs
• 1007 Cost reductions since 1980s in Spain, Denmark, Sweden
• In 2003, 5000 direct jobs in wind sector, 12000 indirect.
• Worries about cost increases to consumers if RE become very widespread.