Modelling the social funding and spill-over tax for addressing the green energy financing gap

Naoyuki Yoshino, Farhad Taghi Zadeh Hesary, Masaki Nakahigashi

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

The major challenge for filling the financing gaps of green energy is lower rate of return of green projects comparing to fossil fuels. Electricity tariffs are often regulated by governments; It has to be kept in low price to serve for every households as a necessary goods. Sources of revenue from green energy comes only from user charges. Hence it is not so much attractive for private investors. The paper is proposing a model for utilization of the tax revenue spillover of green energy supply by returning the portion of it to green energy projects in order to increase their rate of return. In addition, the paper is proposing a social community based funding scheme for smaller scale green projects (e.g. solar and wind). The paper theoretically and empirically shows that utilizing spillover effect in form of tax return for funding green energy projects will increase the rate of return and make them feasible and interesting for the private investors.

Original languageEnglish
Pages (from-to)34-41
Number of pages8
JournalEconomic Modelling
Volume77
DOIs
Publication statusPublished - 2019 Mar 1

Fingerprint

Financing
Tax
Green energy
Spillover
Modeling
Funding
Rate of return
Private investors
Tariffs
Household
Tax revenues
Government
Revenue
User charges
Fossil fuels
Spillover effects
Community-based
Electricity

Keywords

  • Community-based fund
  • E62
  • G21
  • Green energy
  • Green finance
  • Hometown investment trust funds
  • Q21
  • Renewable energy
  • Spillover effect

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Modelling the social funding and spill-over tax for addressing the green energy financing gap. / Yoshino, Naoyuki; Taghi Zadeh Hesary, Farhad; Nakahigashi, Masaki.

In: Economic Modelling, Vol. 77, 01.03.2019, p. 34-41.

Research output: Contribution to journalArticle

@article{9e615ad8ae2f4029983f34676a18f952,
title = "Modelling the social funding and spill-over tax for addressing the green energy financing gap",
abstract = "The major challenge for filling the financing gaps of green energy is lower rate of return of green projects comparing to fossil fuels. Electricity tariffs are often regulated by governments; It has to be kept in low price to serve for every households as a necessary goods. Sources of revenue from green energy comes only from user charges. Hence it is not so much attractive for private investors. The paper is proposing a model for utilization of the tax revenue spillover of green energy supply by returning the portion of it to green energy projects in order to increase their rate of return. In addition, the paper is proposing a social community based funding scheme for smaller scale green projects (e.g. solar and wind). The paper theoretically and empirically shows that utilizing spillover effect in form of tax return for funding green energy projects will increase the rate of return and make them feasible and interesting for the private investors.",
keywords = "Community-based fund, E62, G21, Green energy, Green finance, Hometown investment trust funds, Q21, Renewable energy, Spillover effect",
author = "Naoyuki Yoshino and {Taghi Zadeh Hesary}, Farhad and Masaki Nakahigashi",
year = "2019",
month = "3",
day = "1",
doi = "10.1016/j.econmod.2018.11.018",
language = "English",
volume = "77",
pages = "34--41",
journal = "Economic Modelling",
issn = "0264-9993",
publisher = "Elsevier",

}

TY - JOUR

T1 - Modelling the social funding and spill-over tax for addressing the green energy financing gap

AU - Yoshino, Naoyuki

AU - Taghi Zadeh Hesary, Farhad

AU - Nakahigashi, Masaki

PY - 2019/3/1

Y1 - 2019/3/1

N2 - The major challenge for filling the financing gaps of green energy is lower rate of return of green projects comparing to fossil fuels. Electricity tariffs are often regulated by governments; It has to be kept in low price to serve for every households as a necessary goods. Sources of revenue from green energy comes only from user charges. Hence it is not so much attractive for private investors. The paper is proposing a model for utilization of the tax revenue spillover of green energy supply by returning the portion of it to green energy projects in order to increase their rate of return. In addition, the paper is proposing a social community based funding scheme for smaller scale green projects (e.g. solar and wind). The paper theoretically and empirically shows that utilizing spillover effect in form of tax return for funding green energy projects will increase the rate of return and make them feasible and interesting for the private investors.

AB - The major challenge for filling the financing gaps of green energy is lower rate of return of green projects comparing to fossil fuels. Electricity tariffs are often regulated by governments; It has to be kept in low price to serve for every households as a necessary goods. Sources of revenue from green energy comes only from user charges. Hence it is not so much attractive for private investors. The paper is proposing a model for utilization of the tax revenue spillover of green energy supply by returning the portion of it to green energy projects in order to increase their rate of return. In addition, the paper is proposing a social community based funding scheme for smaller scale green projects (e.g. solar and wind). The paper theoretically and empirically shows that utilizing spillover effect in form of tax return for funding green energy projects will increase the rate of return and make them feasible and interesting for the private investors.

KW - Community-based fund

KW - E62

KW - G21

KW - Green energy

KW - Green finance

KW - Hometown investment trust funds

KW - Q21

KW - Renewable energy

KW - Spillover effect

UR - http://www.scopus.com/inward/record.url?scp=85064178314&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85064178314&partnerID=8YFLogxK

U2 - 10.1016/j.econmod.2018.11.018

DO - 10.1016/j.econmod.2018.11.018

M3 - Article

AN - SCOPUS:85064178314

VL - 77

SP - 34

EP - 41

JO - Economic Modelling

JF - Economic Modelling

SN - 0264-9993

ER -