Publication at Faculty of Mathematics and Physics, Faculty of Social Sciences |
2012
Abstract
This paper deals with the evaluation of financial cost of public expenditure program targeted to support the photovoltaic production of electricity. The theoretical part of the paper provides decomposition of price gap between market price of electricity and publicly subsidized price paid to the producers of photovoltaic electricity.
This price gap covers both profit and pure dead weight loss. The empirical part of the paper evaluates this price gap on Czech data from 2009 and 2010.
This evaluation uses both average market price of electricity and a shadow market price of photovoltaic electricity.