Damme, E. van Zwart, G. (Tilburg University, Center for Economic Research)
Abstract
In order to meet the Kyoto targets, in the Netherlands in 2010 9% of electricity consumption should be generated from renewable resources. In this paper, we discuss and comment on the green energy policy that the Dutch government has adopted in 2001 and 2002 in order to reach this goal, and the new subsidy system that will be in place as of 2003. On the one hand, the policies from the past were successful since they led to 10% of electricity consumption being green in 2001, with a further increase to 13% in 2002. On the other hand, the government argued that the policy was too costly and inefficient. We analyze whether the arguments that the Dutch government used to get the new law accepted hold water and we show that mainly the Dutch supply companies benefited from the generous subsidies that the government provided.
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Publisher Info
Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
72.
Find related papers by JEL classification: D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
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