Amundsen, Eirik S. and Nese, Gjermund (2006): Integratation of Tradable Green Certificate Markets: What can be expected?
Download (170Kb) | Preview
Recently, many countries have introduced systems of tradable green certificates (TGCs) in order to increase the proportion of their electricity supply obtained from renewable sources. The main objective of this paper is to investigate the analytics of a TGC system of the Nordic type when integrated within several countries and to determine what can be expected from the system when applied in a real world setting. Both an analytical and a partial equilibrium version of the model are applied. In particular, we ask whether it is possible to derive analytically clear cut results with respect to how the system affects generation of electricity from renewable resources, and from carbon emitting resources, in the same way as it is possible for other known policy instruments such as an emission permit system or a plain carbon emission tax. A key result is that TGCs may be an imprecise instrument for regulating the generation of green electricity and that the combination of TGCs with a system of tradable emission permits may yield outcomes contrary to the intended purpose.
|Item Type:||MPRA Paper|
|Original Title:||Integratation of Tradable Green Certificate Markets: What can be expected?|
|Keywords:||Renewable energy; electricity; green certificates; emissions trading|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q28 - Government Policy
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q42 - Alternative Energy Sources
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory
|Depositing User:||Eirik S. Amundsen|
|Date Deposited:||19. Sep 2008 13:37|
|Last Modified:||12. Feb 2013 12:59|
Amundsen, E.S. and J.B. Mortensen (2001): "The Danish green certificate system: Some simple analytical results", Energy Economics, 23, 489–509.
Amundsen, E.S., F. M. Baldursson, and J.B. Mortensen (2006): "Price Volatility and Banking in Green Certificate Markets", Environmental and Resource Economics,35:259-287 (DOI 10.1007/s10640-006-9015-1.
Amundsen, E.S. and L. Bergman (2002)”Will Cross-Ownership Reestablish Market Power in the Nordic Power Market”, The Energy Journal, 23 (2):73-95
Andersson, B and L. Bergman (1995): “Market Structure and the Price of Electricity: An ex Ante Analysis of the Deregulated Swedish Electricity Market”, The Energy Journal, 16 (2): 97-109
Bergman, L. and M. Radetzki (2003): "Global klimatpolitik (Global climate policy)", SNS Förlag, Stockholm. Butler, L. and K. Neuhoff (2005): "Comparison of Feed in Tariff, Quota and Auction Mechanisms to Support Wind Power Development", Cambridge Working Papers in Economics, 0503, Faculty of Economics, University of Cambridge, Cambridge, UK.
Bye, T. A. (2003): "On the price and volume effects from green certificates in the energy market", Discussion paper 351/2003, Research Department, Statistics Norway.
European Commission (2003): "Greenhouse gas emissions trading: Commissioner Wallstrøm hails final agreement on climate change breakthrough", Press Release IP/03/931. EPA, (2003): “EPA Strategic plan: Direction for the future. U.S. Environmental Protection Agency.”
EU/Commission, (2000): Directive of the European Parliament and of the council on the promotion of electricity from renewable energy sources in the internal electricity market. Com(2000) 279 final, Brussels.
Finon, D. and P. Menanteau (2003) "The Static and Dynamic Efficiency of Instruments of Promotion of Renewables", Energy Studies Review, 12(1): 53–83.
Giovinetto, Anna, (2003). On the track of green certificates. Environmental Finance, September 2003.
Jensen, S.G. and K. Skytte (2003): "Simultaneous Attainment of Energy Goals by Means of Green Certificates and Emission Permits", Energy Policy, 31(1), 63–71.
Nese, G. (2003): "Essays in Liberalized Energy Markets", Doctoral dissertation, Department of Economics, The University of Bergen.
Unger, T. and E.O. Ahlgren (2003): "Impacts of a common green certificate market on electricity and carbon emission markets in the Nordic countries", Energy Policy, 33(16), 2152- 2163.