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In page Feed-in tariff:
"In environmental economics, a FIT can be differentiated based on marginal cost. In this policy structure, the tariff price ranges from just above the spot rate to the price required to reach the government's optimal production level. Firms with lower marginal costs are offered lower prices, while those with higher marginal costs are subjected to higher tariff prices. This policy aims to decrease the profitability of certain production sites and promote a more widespread distribution of generators. However, it may result in less cost-effective production of renewable electricity as the most efficient sites might be underutilized.[citation needed]
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