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Economic impacts from the promotion of renewable energies: The German experience

Similarly, the reverse movement represents a decrease in demand. The beauty of the connection between demand and marginal value is that an increase in demand could in principle have meant either more units demanded at a given price, or a higher willingness to pay for each unit, but those are in fact the same concept – both create a movement up and to the right. For many goods, an increase in income increases the demand for the good. Porsche automobiles, yachts, and Beverly Hills homes are mostly purchased by people with high incomes. Few billionaires. | orwi Projektbericht Rheinisch-Westfalisches Institut fur Wirtschaftsforschung Economic impacts from the promotion of renewable energies The German experience Final report Impressum Board of Directors Prof. Dr. Christoph M. Schmidt President Prof. Dr. Thomas K. Bauer Vicepresident Prof. Dr. Wim Kosters Governing Board Dr. Eberhard Heinke Chairman Dr. Henning Osthues-Albrecht Dr. Rolf Pohlig Reinhold Schulte Vice Chairmen Manfred Breuer Oliver Burkhard Dr. Hans Georg Fabritius Hans Jurgen Kerkhoff Dr. Thomas Koster Dr. Wilhelm Koll Prof. Dr. Walter Kramer Dr. Thomas A. Lange Tillmann Neinhaus Hermann Rappen Dr.-Ing. Sandra Scheermesser Scientific Advisory Board Prof. Michael C. Burda Ph.D. Prof. David Card Ph.D. Prof. Dr. Clemens Fuest Prof. Dr. Justus Haucap Prof. Dr. Walter Kramer Prof. Dr. Michael Lechner Prof. Dr. Till Requate Prof. Nina Smith Ph.D. Honorary Members of RWI Heinrich Frommknecht Prof. Dr. Paul Klemmer t Dr. Dietmar Kuhnt RWI Report Published by Rheinisch-Westfalisches Institut fur Wirtschaftsforschung HohenzollernstraRe 1 3 45128 Essen Germany Phone 49 201 81 49-0 Fax 49 201 81 49-200 e-mail rwi@rwi-essen.de All rights reserved. Essen 2009 Editor Prof. Dr. Christoph M. Schmidt Economic impacts from the promotion of renewable energies The German experience Final report - October 2009 Report Rheinisch-Westfalisches Institut fur Wirtschaftsforschung Economic impacts from the promotion of renewable energies The German experience Final report - October 2009 Project team Dr. Manuel Frondel Nolan Ritter Prof. Colin Vance Ph.D. Project management We highly appreciate the research assistance by Fabian Scheffer and would also like to thank Daniela Schwindt for designing the report s layout. We are grateful for valuable comments and suggestions by Prof. Christoph Schmidt. .