POLIMP Briefing Note 6: Cost-effectiveness of renewable energy support schemes: The case of bioenergy

With public budgets under pressure, the cost-effectiveness of public support for renewable energy is under discussion. This briefing note shows that evaluations of cost-effectiveness should not be limited to financial-economic considerations, but be complemented by an assessment of externalities. In addition, cost-effectiveness should be assessed in the context of several years, to ensure that public support does not cause competitive distortions.