Determination of Optimal Financial Government Incentives in Wind Energy Investments

Abstract

No carbon gas is released into the atmosphere in electricity production with wind energy. Therefore, this type of energy is significantly environmentally friendly. On the other hand, thanks to wind energy investments, a country can produce its own energy. This reduces the country’s foreign dependency on energy. Due to these positive aspects, increasing wind energy investments is very important for both the social and economic development of the country. The aim of this study is to define the most appropriate government support to improve wind energy investments. In this context, four different criteria are defined in this regard by making a detailed literature review. In the analysis process, fuzzy AHP methodology is considered. Within this framework, the comparative evaluations of three different experts are obtained. The findings indicate that providing loans with low-interest rate is the most appropriate government support for the wind energy investors. Additionally, it is also defined that tax deduction is another important issue for this purpose. However, it is also identified that appropriate location supply and purchase guarantee of the product produced have lower importance in comparison with the others. It is strongly recommended that governments should provide loans to the wind energy investors. This strategy can minimize the problem of high initial cost so that it can be much easier to attract the attention of the investors.

Citation

Yüksel, S. and Ubay, G.G. (2021), "Determination of Optimal Financial Government Incentives in Wind Energy Investments", Dinçer, H. and Yüksel, S. (Ed.) Strategic Outlook in Business and Finance Innovation: Multidimensional Policies for Emerging Economies, Emerald Publishing Limited, Leeds, pp. 25-34. https://doi.org/10.1108/978-1-80043-444-820211003