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EU renewable energy support policy: Faith or facts?

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Author Info

  • Jacobsson, Staffan
  • Bergek, Anna
  • Finon, Dominique
  • Lauber, Volkmar
  • Mitchell, Catherine
  • Toke, David
  • Verbruggen, Aviel
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    Abstract

    The recent EU Commission proposal for promoting the supply of power from renewable energy sources was originally based on a pan-European, harmonised tradable green certificate (TGC) scheme. We suggest, on the basis of a multi-disciplinary analysis, that a pan-EU TGC system is not the way forward for Europe. It is vital that the Commission (and the majority of Member States) avoids implementation of such policy designs put forward by a coalition of vested interests. They should instead look at, and act upon, the available evidence from those countries that have experimented with TGCs (e.g. Flanders, UK and Sweden) and design policies that stand a better chance of meeting the criteria of effectiveness, efficiency and equity. In particular, the policies must enable EU to meet the immense innovation/industrialisation challenge by inducing the development of a capital goods industry that can, eventually, diffuse a broad range of technologies that use renewable energy sources. Only then we can acquire an ability to implement an industrial revolution in the energy system in a way that broadly meets the criteria of effectiveness and dynamic efficiency.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 37 (2009)
    Issue (Month): 6 (June)
    Pages: 2143-2146

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    Handle: RePEc:eee:enepol:v:37:y:2009:i:6:p:2143-2146

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

    Related research

    Keywords: EU Policy Tradable green certificates Evidence;

    References

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    1. Sanden, Bjorn A. & Azar, Christian, 2005. "Near-term technology policies for long-term climate targets--economy wide versus technology specific approaches," Energy Policy, Elsevier, vol. 33(12), pages 1557-1576, August.
    2. Stenzel, Till & Frenzel, Alexander, 2008. "Regulating technological change--The strategic reactions of utility companies towards subsidy policies in the German, Spanish and UK electricity markets," Energy Policy, Elsevier, vol. 36(7), pages 2645-2657, July.
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    Cited by:
    1. Schaffer, Lena Maria & Bernauer, Thomas, 2014. "Explaining government choices for promoting renewable energy," Energy Policy, Elsevier, vol. 68(C), pages 15-27.
    2. Nilsson, Måns & Nilsson, Lars J. & Ericsson, Karin, 2009. "The rise and fall of GO trading in European renewable energy policy: The role of advocacy and policy framing," Energy Policy, Elsevier, vol. 37(11), pages 4454-4462, November.
    3. Bergek, Anna & Jacobsson, Staffan, 2010. "Are tradable green certificates a cost-efficient policy driving technical change or a rent-generating machine? Lessons from Sweden 2003-2008," Energy Policy, Elsevier, vol. 38(3), pages 1255-1271, March.
    4. Kim, Younghwan & Kim, Minki & Kim, Wonjoon, 2013. "Effect of the Fukushima nuclear disaster on global public acceptance of nuclear energy," Energy Policy, Elsevier, vol. 61(C), pages 822-828.
    5. René Kemp, 2010. "The Dutch energy transition approach," International Economics and Economic Policy, Springer, vol. 7(2), pages 291-316, August.
    6. Blindheim, Bernt, 2013. "Implementation of wind power in the Norwegian market; the reason why some of the best wind resources in Europe were not utilised by 2010," Energy Policy, Elsevier, vol. 58(C), pages 337-346.
    7. Jacobsson, Staffan & Karltorp, Kersti, 2013. "Mechanisms blocking the dynamics of the European offshore wind energy innovation system – Challenges for policy intervention," Energy Policy, Elsevier, vol. 63(C), pages 1182-1195.
    8. Lüthi, Sonja & Wüstenhagen, Rolf, 2012. "The price of policy risk — Empirical insights from choice experiments with European photovoltaic project developers," Energy Economics, Elsevier, vol. 34(4), pages 1001-1011.
    9. Sivek, Martin & Kavina, Pavel & Jirásek, Jakub, 2011. "European Union and the formation of its initiative in energy minerals," Energy Policy, Elsevier, vol. 39(9), pages 5535-5540, September.
    10. Paul Lehmann & Felix Creutzig & Melf-Hinrich Ehlers & Nele Friedrichsen & Clemens Heuson & Lion Hirth & Robert Pietzcker, 2012. "Carbon Lock-Out: Advancing Renewable Energy Policy in Europe," Energies, MDPI, Open Access Journal, vol. 5(2), pages 323-354, February.
    11. Verbruggen, Aviel & Lauber, Volkmar, 2009. "Basic concepts for designing renewable electricity support aiming at a full-scale transition by 2050," Energy Policy, Elsevier, vol. 37(12), pages 5732-5743, December.
    12. John Foster & Liam Wagner, 2014. "International experience with transformations in electricity markets: A Short Literature Review," Energy Economics and Management Group Working Papers 2-2014, School of Economics, University of Queensland, Australia.
    13. Aviel Verbruggen, 2011. "Preparing the design of robust climate policy architectures," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 11(4), pages 275-295, November.
    14. Nesta, Lionel & Vona, Francesco & Nicolli, Francesco, 2014. "Environmental policies, competition and innovation in renewable energy," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 396-411.
    15. Klessmann, Corinna & Held, Anne & Rathmann, Max & Ragwitz, Mario, 2011. "Status and perspectives of renewable energy policy and deployment in the European Union—What is needed to reach the 2020 targets?," Energy Policy, Elsevier, vol. 39(12), pages 7637-7657.
    16. Tosun, Jale & Solorio, Israel, 2011. "Exploring the Energy-Environment Relationship in the EU: Perspectives and Challenges for Theorizing and Empirical Analysis," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 15, November.
    17. Walz, Rainer & Helfrich, Nicki & Enzmann, Alexander, 2009. "A system dynamics approach for modelling a lead-market-based export potential," Working Papers "Sustainability and Innovation" S3/2009, Fraunhofer Institute for Systems and Innovation Research (ISI).
    18. Ruester, Sophia & Schwenen, Sebastian & Finger, Matthias & Glachant, Jean-Michel, 2014. "A post-2020 EU energy technology policy: Revisiting the strategic energy technology plan," Energy Policy, Elsevier, vol. 66(C), pages 209-217.
    19. Aleluia, João & Leitão, João, 2009. "International Entrepreneurship and Technology Transfer: The CDM´s Reality in China," MPRA Paper 16150, University Library of Munich, Germany.

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