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SCR Exam - Question 53


To achieve emissions reduction goals, a South American government considers policies other than carbon pricing to target carbon-intensive industries more effectively. The government intends to promote renewable power generation by implementing subsidies.

Which action should the government take to support this subsidy policy?

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Correct Answer: AD

To support a subsidy policy for promoting renewable power generation, the government should establish feed-in tariffs. Feed-in tariffs provide long-term contracts to renewable energy producers, offering a guaranteed price per unit of electricity generated. This mechanism directly subsidizes the renewable energy sector and incentivizes investment in renewable power generation.

Discussion

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KarnitschnigOption: D
Apr 15, 2023

D. Feed in tariffs are subsidies. RPS are not.

CecileCOption: D
Apr 21, 2023

I think the correct answer is D.

LX83Option: D
Oct 24, 2023

RPSs require commercial power producers to source a specific portion of their supply from renewable energy sources, while feed-in tariffs offer a guaranteed price per unit of electricity generated.