A Study on the Effect of Incentive Policies and Regulation for Spread of Renewable Energy

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It is inevitable to liberalize electricity market to accept small sized power generation such as power generation by renewable energy. There are several types of liberalization, for example American type and British type. Compared with these countries, liberalization in Japanese electricity market is not enough to spread the utilization of renewable energy. There are two categories of policies for the spread of renewable energy, interventional policies and incentive policies. In the history of industrial policies in Japan, interventional policies had been utilized. Typical means of these policies are subsidization, favorable finance or tax reduction. In the case of promotion policy for renewable energy, such kind of interventional policies had been utilized in Japan. However, renewable portfolio standard was introduce recently in 2002. Such kind of incentive policies become also popular in European countries.As renewable energy has a characteristics of regional energy, co-operative ownership has been prevailing especially in Denmark. We investigate the historical background of these ownership.For governmental support for technological development, we compare American-German type that failed to develop wind power industry with Danish type which succeeded in the development of wind turbine manufacturing industry.