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A general equilibrium cost-bene t rule for green certi ficates

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Abstract

I embed a electricity certificate system, mandating that a certain fraction of total electricity production must come from renewable sources, in a stylized competitive economy and derive a general equilibrium cost-benefit rule from perturbing the regulation. The welfare consequences (ignoring distributional effects) of the perturbation are compactly summarized in a simple formula.

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  • Kriström, Bengt, 2016. "A general equilibrium cost-bene t rule for green certi ficates," CERE Working Papers 2016:19, CERE - the Center for Environmental and Resource Economics.
    • Handle: RePEc:hhs:slucer:2016_019
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    Keywords

    general equilibrium; cost-benefit;

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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