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Voluntary agreements with white certificates for energy efficiency improvement as a hybrid policy instrument

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  • Oikonomou, V.
  • Patel, M.K.
  • van der Gaast, W.
  • Rietbergen, M.

Abstract

In this paper we examine the implementation of a combined policy scheme that consists of a traditional instrument, the voluntary agreements (VAs), and an innovative one, the white certificates (WhC). The basic structure of this scheme is that energy suppliers who undertake an energy efficiency obligation under a white certificate scheme can make use of voluntary actions to enhance investments in innovative energy savings projects. Energy suppliers and other market parties can additionally or in parallel participate in voluntary agreements and set energy efficiency targets. For fulfilling their voluntary agreement target, these market parties can receive tax exemptions or receive white certificates that they can sell in the market. Transaction costs and baseline definition for demonstrating energy efficiency improvement deserve special attention. This policy can assist a country to enhance energy efficiency improvement while it stimulates innovation. Cost effectiveness can be higher than the case of stand-alone policy instruments, since more financing options are available for more expensive projects. Nevertheless, the added value of the scheme lies more in the implementation of innovative measures for enhanced energy efficiency. Furthermore, market parties can discover more business opportunities in energy efficiency and establish a green image; hence an integrated scheme should achieve higher political acceptability.

Suggested Citation

  • Oikonomou, V. & Patel, M.K. & van der Gaast, W. & Rietbergen, M., 2009. "Voluntary agreements with white certificates for energy efficiency improvement as a hybrid policy instrument," Energy Policy, Elsevier, vol. 37(5), pages 1970-1982, May.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:5:p:1970-1982
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    References listed on IDEAS

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    2. Rasha Ahmed, 2012. "Promoting energy-efficient products: voluntary or regulatory approaches?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(3), pages 303-321, July.
    3. Soroush Safarzadeh & Morteza Rasti-Barzoki & Jörn Altmann & Ilkyeong Moon, 2024. "A game theoretic approach for tradable white certificates regarding energy rebound and government intervention," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 29643-29676, November.
    4. Safarzadeh, Soroush & Rasti-Barzoki, Morteza & Hejazi, Seyed Reza, 2020. "A review of optimal energy policy instruments on industrial energy efficiency programs, rebound effects, and government policies," Energy Policy, Elsevier, vol. 139(C).
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    6. Safarzadeh, Soroush & Hafezalkotob, Ashkan & Jafari, Hamed, 2022. "Energy supply chain empowerment through tradable green and white certificates: A pathway to sustainable energy generation," Applied Energy, Elsevier, vol. 323(C).

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