Republic of uzbekistan ministry of higher education, science and innovations

REPUBLIC OF UZBEKISTAN
MINISTRY OF HIGHER EDUCATION, SCIENCE AND INNOVATIONS
Fergana State University

“English”

Independent work
subject
MAVZU: MARKET FAILURES PUBLIC GOODS AND EXTERNALITIES


Made by : _______________
Received: _______________

Plans :

1. 
   Fundamental issues in Renewable Energy
   
2. 
   Resource use and deviations from perfectly functioning markets
   
3. 
   Nature of deviations from perfectly functioning markets
   

INTRODUCTION
Policy interest in renewable energy technolo- gies has been gathering momentum for the past several decades, and increased incentives and funding for renewable energy are often described as the panacea for a variety of issues ranging from environmental quality to national security to green job creation. Sizable policies and programs have been implemented worldwide to encourage a transition from fossil-based electricity genera- tion to renewable electricity generation, and in particular to fledgling green technologies such as wind, solar, and biofuels.
The United States has a long history of policy activity in promoting renewables, including state- level programs, such as the California Solar Initia- tive, which provides rebates for solar photovoltaic purchases, as well as federal programs, such as tax incentives for wind. Even in the recent stimulus package, the American Recovery and Reinvest- ment Act of 2009, $6 billion was allocated for renewable energy and electric transmission tech- nology loan guarantees (U.S. Congress 2009). (See Chapter 11 for further discussion of the U.S. experience.) Moreover, such policies are not restricted to the developed world. For example, China promulgated a National Renewable Energy Law in 2005 that provides tax and other incentives for renewable energy and has suc- ceeded in creating a burgeoning wind industry (Cherni and Kentish 2007).
Advocates of strong policy incentives for renewable energy in the United States use a vari- ety of arguments to justify policy action, such as ending the “addiction” to foreign oil, addressing global climate change, or creating new technolo- gies to increase U.S. competitiveness. However, articulation of these goals leaves open the ques- tion of whether renewable energy policy is a sen- sible means to reach these goals, or even whether particular renewable energy policy helps meet these goals. Furthermore, many different policy instruments are possible, so one must evaluate what makes a particular policy preferable over others.

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