Estimating the CO₂ abatement cost: Substitute Price of Avoiding CO₂ Emission (SPAE) by Renewable Energy×'s Feed in Tariff in selected countries

Many renewable energy policies are looking into new incentives to absorb investments by targeting abating CO₂ emission and fixing energy price fluctuation. Feed in Tariff (FIT) is a policy for rebating the amount of generated renewable electricity to investor. FIT is also defined as a CO ₂ mitigation policy in electricity generation from renewable sources. This paper presents a cost benefit survey that estimates the real produced carbon dioxide for electricity generation in selected countries. This study introduces the substitute price of avoiding CO₂ emission as an indicator. The new indicator shows how much is paid for avoiding CO₂ by each selected countries through the FIT policy for renewable technologies. The amount calculated for solar energy is taken as a case in this paper. The result confirms that the FIT policy reasonably works for solar energy in absorbing investment. However the FIT policy claims a large portion of liquidity compared with other approaches. Hence makes this mechanism inept as a CO ₂ mitigation policy.