Economics of Solar Panel Subsidies

2,525 views

Published on

Unit 1 Micro Revision

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,525
On SlideShare
0
From Embeds
0
Number of Embeds
236
Actions
Shares
0
Downloads
38
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Economics of Solar Panel Subsidies

  1. 1. Unit 1 MicroSolar Panel Subsidies– Analysis andEvaluation
  2. 2. Renewable Energy & Solar Subsidies
  3. 3. Using cross-elasticity ofdemand, assess the likelyrelationship between thedemand for solar panelsand the price ofhousehold electricityfrom non-renewablesources
  4. 4. Rising electricitypricesIncentives toswitch torenewable energyThere is a cost toswitchingRising marketdemand for solarpanels
  5. 5. Despite a strong rise in demand, the market price of solar panelshas fallen in recent years. With the help of a supply and demanddiagram, explain why this can have happenedPrice ofsolarpanelsQuantityD1S1P1Q1
  6. 6. Despite a strong rise in demand, the market price of solar panelshas fallen in recent years. With the help of a supply and demanddiagram, explain why this can have happenedPrice ofsolarpanelsQuantityD1S1P1Q1D1
  7. 7. Despite a strong rise in demand, the market price of solar panelshas fallen in recent years. With the help of a supply and demanddiagram, explain why this can have happenedPrice ofsolarpanelsQuantityD1S1P1Q1D2P2
  8. 8. Despite a strong rise in demand, the market price of solar panelshas fallen in recent years. With the help of a supply and demanddiagram, explain why this can have happenedPrice ofsolarpanelsQuantityD1S1P1Q1D2P2S2
  9. 9. Despite a strong rise in demand, the market price of solar panelshas fallen in recent years. With the help of a supply and demanddiagram, explain why this can have happenedPrice ofsolarpanelsQuantityD1S1P1Q1D2P2S2P3
  10. 10. Despite a strong rise in demand, the market price of solar panelshas fallen in recent years. With the help of a supply and demanddiagram, explain why this can have happenedPrice ofsolarpanelsD1S1P1Q1D2P2S2P3Q2
  11. 11. Evaluate the argument forgovernment intervention in themarket for solar panels to encouragethe growth of renewable energyrather than allowing free marketforces to operate
  12. 12. The case for solar subsidiesPromotes renewable energy andlowers oil dependencyCreates thousands of new jobs – + apositive multiplier effectCuts bills for consumers & councilsEconomies of scale if the take-up ofpanels increases
  13. 13. Positive consumption externalitiesCosts andBenefitsOutputMarginal privatebenefitMarginal privatecost and social costABMarginal socialbenefitCDLoss of SocialWelfare due tomarket failure
  14. 14. Solar subsidies – critical evaluationSubsidies benefit richer householdsLimited effectiveness for moneyspent – opportunity costMis-selling of solar panels especiallyto vulnerable householdsMost solar panels are imported

×