Korean Energy Economic Review ISSN:1599-7057(Print) 에너지경제연구

This study compares the effectiveness of the FIT (Feed-In Tariff) andRPS (Renewable Portfolio Standard) policy. Using the annual data of104 countries from 1990 to 2014, we analyzed the effects of the twopolicies on the supply rate of renewable energy. After using randomeffect Tobit model, we found that the effect of FIT is larger than thatof RPS. For OECD countries, the effect of FIT policy was greater thanthat of RPS. However, for non-OECD countries, RPS was more effectivethan FIT. Comparing policy effects based on renewable energy supplyrate, FIT was effective in countries with high supply rate, and RPSpolicy was effective in countries with low supply rate. The additionaleffect of implementing the RPS and FIT policies at the same time wasnot large overall. However on wind energy, the effect increased whenthe policies were implemented together.