Abstract

To what extent does environmental legislation achieve the objectives it pursues? The paper contributes to this discussion on effectiveness in two ways. First, it provides a conceptual framework from an economic and legal perspective. In particular, it clarifies that effectiveness in the narrow sense relates to achieving legally set goals ± which, in turn, depends on suitability and enforcement of rules. However, a comprehensive framework needs to go beyond effec- tiveness in the narrow sense: that is, the more demanding concept of cost-effectiveness, which requires goal achievement at a minimum of societal costs, as well as un-anticipated secondary impacts, may impact the overall assessment. Second, the paper evaluates the effectiveness of the main policy instru- ment to support renewable energy sources (RES) in the German electricity sector, i.e., the German RES Act (Erneuerbare-Energien-Gesetz). To this end, the paper investigates in what respect the RES Act effectively contributes to achieving the objectives of the RES Act; subsequently, the analysis is extended to a more comprehensive approach, assessing both cost- effectiveness and secondary effects of RES support in Germany.

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