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Provision of Renewable Energy using Green Certificates: Market Power and Price Limits

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Author Info

  • Amundsen, Eirik S.

    ()
    (University of Bergen, Department of Economics)

  • Nese, Gjermund

    ()
    (Institute for Research in Economics and Business Administration (SNF))

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    Abstract

    We formulate an analytic equilibrium model for simultaneously functioning electricity market and a market for Green Certificates. The major focus of the paper is the effect of market power in a Green Certificate system. One of the main results from the analysis is that the certificate system faced with market power basically may collapse into a system of per unit subsidies.

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    File URL: http://www.uib.no/filearchive/25-02.pdf
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    Bibliographic Info

    Paper provided by University of Bergen, Department of Economics in its series Working Papers in Economics with number 25/02.

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    Length: 45 pages
    Date of creation: 19 Dec 2012
    Date of revision:
    Handle: RePEc:hhs:bergec:2002_025

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    Postal: Institutt for √łkonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
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    Web page: http://www.uib.no/econ/en
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    Related research

    Keywords: Firm Behavior: Theory; Oligopoly and Other Forms of Market Imperfection; Externalities; Redistributive Effects; Environmental Taxes and Subsidies; Production; Pricing; and Market Structure; Size Distribution of Firms; Electric Utilities;

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