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Interactions between measures for the support of electricity from renewable energy sources and CO2 mitigation

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  • De Jonghe, Cedric
  • Delarue, Erik
  • Belmans, Ronnie
  • D'haeseleer, William
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    Abstract

    As Europe wants to move towards a secure, sustainable and competitive energy market, it has taken action, amongst other, to support electricity from renewable energy sources (RES-E) and to mitigate CO2 emissions. This paper first qualitatively discusses price- and quantity-based measures for RES-E deployment as well as CO2 mitigation. Next, a simulation model is developed to quantitatively discuss the effects of a tradable green certificate system, a premium mechanism, a tradable CO2 allowance system and a CO2 tax on both RES-E deployment and CO2 mitigation. A three-regional model implementation representing the Benelux, France and Germany is used. In a first step of simulations, all measures are implemented separately. In a second step, combinations of both RES-E supporting and CO2 mitigating measures are simulated and discussed. Significant indirect effects are demonstrated, especially for RES-E supporting measures on the reduction of CO2 emissions. Interactions between different measures show that the price level of quantity-based measures can be strongly influenced.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 37 (2009)
    Issue (Month): 11 (November)
    Pages: 4743-4752

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    Handle: RePEc:eee:enepol:v:37:y:2009:i:11:p:4743-4752

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Renewable energy support CO2 mitigation Quantity-based measures;

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    Cited by:
    1. repec:hal:wpaper:hal-00866440 is not listed on IDEAS
    2. Lecuyer, Oskar & Quirion, Philippe, 2013. "Can uncertainty justify overlapping policy instruments to mitigate emissions?," Ecological Economics, Elsevier, vol. 93(C), pages 177-191.
    3. Samuel Fankhauser & Cameron Hepburn & Jisung Park, 2011. "Combining multiple climate policy instruments: how not to do it," LSE Research Online Documents on Economics 37573, London School of Economics and Political Science, LSE Library.
    4. Van den Bergh, Kenneth & Delarue, Erik & D'haeseleer, William, 2013. "Impact of renewables deployment on the CO2 price and the CO2 emissions in the European electricity sector," Energy Policy, Elsevier, vol. 63(C), pages 1021-1031.
    5. Jägemann, Cosima & Fürsch, Michaela & Hagspiel, Simeon & Nagl, Stephan, 2013. "Decarbonizing Europe's power sector by 2050 — Analyzing the economic implications of alternative decarbonization pathways," Energy Economics, Elsevier, vol. 40(C), pages 622-636.
    6. Bird, Lori & Chapman, Caroline & Logan, Jeff & Sumner, Jenny & Short, Walter, 2011. "Evaluating renewable portfolio standards and carbon cap scenarios in the U.S. electric sector," Energy Policy, Elsevier, vol. 39(5), pages 2573-2585, May.
    7. Fischer, Carolyn & Preonas, Louis, 2010. "Combining Policies for Renewable Energy: Is the Whole Less Than the Sum of Its Parts?," International Review of Environmental and Resource Economics, now publishers, vol. 4(1), pages 51-92, June.
    8. Fagiani, Riccardo & Richstein, Jörn C. & Hakvoort, Rudi & De Vries, Laurens, 2014. "The dynamic impact of carbon reduction and renewable support policies on the electricity sector," Utilities Policy, Elsevier, vol. 28(C), pages 28-41.
    9. Ye Liu & Guohe Huang & Yanpeng Cai & Cong Dong, 2011. "An Inexact Mix-Integer Two-Stage Linear Programming Model for Supporting the Management of a Low-Carbon Energy System in China," Energies, MDPI, Open Access Journal, vol. 4(10), pages 1657-1686, October.
    10. repec:hal:ciredw:hal-00866440 is not listed on IDEAS
    11. Ellerman Denny & Delarue Erik & Hannes Weigt, 2012. "CO2 Abatement from RES Injections in the German Electricity Sector: Does a CO2 Price Help?," Working papers 2012/14, Faculty of Business and Economics - University of Basel.
    12. Weigt, Hannes & Ellerman, Denny & Delarue, Erik, 2013. "CO2 abatement from renewables in the German electricity sector: Does a CO2 price help?," Energy Economics, Elsevier, vol. 40(S1), pages S149-S158.
    13. Alishahi, Ehsan & Moghaddam, Mohsen P. & Sheikh-El-Eslami, Mohammad K., 2011. "An investigation on the impacts of regulatory interventions on wind power expansion in generation planning," Energy Policy, Elsevier, vol. 39(8), pages 4614-4623, August.
    14. De Jonghe, C. & Hobbs, B. F. & Belmans, R., 2011. "Integrating short-term demand response into long-term investment planning," Cambridge Working Papers in Economics 1132, Faculty of Economics, University of Cambridge.
    15. Samuel Fankhauser & Cameron Hepburn & Jisung Park, 2011. "Combining multiple climate policy instruments: how not to do it," Grantham Research Institute on Climate Change and the Environment Working Papers 38, Grantham Research Institute on Climate Change and the Environment.
    16. Thema, Johannes & Suerkemper, Felix & Grave, Katharina & Amelung, Adrian, 2013. "The impact of electricity demand reduction policies on the EU-ETS: Modelling electricity and carbon prices and the effect on industrial competitiveness," Energy Policy, Elsevier, vol. 60(C), pages 656-666.
    17. Tsao, C.-C. & Campbell, J.E. & Chen, Yihsu, 2011. "When renewable portfolio standards meet cap-and-trade regulations in the electricity sector: Market interactions, profits implications, and policy redundancy," Energy Policy, Elsevier, vol. 39(7), pages 3966-3974, July.
    18. Zhao, Yong & Tang, Kam Ki & Wang, Li-li, 2013. "Do renewable electricity policies promote renewable electricity generation? Evidence from panel data," Energy Policy, Elsevier, vol. 62(C), pages 887-897.

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