Analysis
in 2000, Germany had a subsidy on renewable energy. Grants and loans too.
Evaluation
Pros
- Environmental benefit. Decreased CO2 emissions by 25% between 1990 and now.
- Economic benefit, suggested to create 300,000 jobs by 2020.
- Technological advancements
Cons
- Financial burden on government
- opportunity cost for other emission and green house gas programs.
- Relying too much on government.
- Market distortion, favouring renewable energy can lead to inefficiencies.
Expansionary Fiscal Evaluation
Cons
- Time Lag
- Debt
- Inflationary
Pros
- Similar to subsidy.