A Multi-Criterion Model for Evaluating the Efficiency of Solar Energy Incentives

Regardless of any scientific uncertainty about climate change, unequivocal evidence illustrates the emergence of various renewable energies in the international economy. One promising and prevailing technology is solar energy. Given the heightened demand for renewable energy, the current debate centers on how to foster an environment conducive to investment and efficiency in order to increase total welfare. This article provides a survey of the major incentives that exist in the international community to promote the adoption of solar power, introduces a unique working model that compiles and modifies core conclusions in the literature, and provides a methodology to assess the effectiveness of these incentives. This article’s underlying objective is to create a reasonable theoretical model and qualitative list of criteria that can be applied to various incentives, like feed-in-tariffs, in order to determine optimal incentives for use in United States energy policy.