Green certificate price uncertainty and renewable energy investment: Evidence from an integration between solar and non-solar renewable energy certificate(REC)markets in Korea(PPT)

摘要

Research questions 1.Does renewable energy firms decrease(increase)investments in capacity when REC prices are unstable(stable)? 2.Does renewable energy firms require large amount of external financing to build a new plant when REC price uncertainty is high? Main findings 3.Integration of solar and non-solar REC markets significantly reduces REC price volatility and facilitates trades.4.Renewable project developers decrease investment in the presence of high REC price uncertainty,while they increase investment when REC prices are expected to be stable.5.Under a severe uncertainty about REC prices,renewable energy firms require more debt and equity financing to proceed a project.