Are tradable green certificates a cost-efficient policy driving technical change or a rent-generating machine? Lessons from Sweden 2003-2008
In the European policy debate, tradable green certificates (TGC) have been suggested to be a superior regulatory framework for promoting the diffusion of renewable electricity technologies. The purpose of this paper is to assess the performance of the Swedish TGC system, contributing to the European debate on the suitability of different types of frameworks. The expectations of the TGC system were that it would: (a) be effective in terms of increasing the supply of "green" electricity; (b) do this in a cost effective manner (from both a social and a consumer perspective); (c) generate an equitable distribution of costs and benefits and (d) drive technical change. So far, it has performed adequately in terms of effectiveness and social cost effectiveness. However, consumer costs have been substantially higher than expected, very large rents are generated and, at best, it contributes marginally to technical change. Thus, a TGC framework should be selected if the overriding concern is to minimize short term social costs of reaching a certain goal with a high degree of predictability. However, it cannot be expected to also drive technical change, keep consumer costs down and be equitable. Such trade-offs need to be revealed and not obscured by analysts.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jacobsson, Staffan & Bergek, Anna & Finon, Dominique & Lauber, Volkmar & Mitchell, Catherine & Toke, David & Verbruggen, Aviel, 2009. "EU renewable energy support policy: Faith or facts?," Energy Policy, Elsevier, vol. 37(6), pages 2143-2146, June.
- Staffan Jacobsson & Anna Bergek, 2004. "Transforming the energy sector: the evolution of technological systems in renewable energy technology," Industrial and Corporate Change, Oxford University Press, vol. 13(5), pages 815-849, October.
- Menanteau, Philippe & Finon, Dominique & Lamy, Marie-Laure, 2003. "Prices versus quantities: choosing policies for promoting the development of renewable energy," Energy Policy, Elsevier, vol. 31(8), pages 799-812, June.
- Contaldi, Mario & Gracceva, Francesco & Tosato, Giancarlo, 2007. "Evaluation of green-certificates policies using the MARKAL-MACRO-Italy model," Energy Policy, Elsevier, vol. 35(2), pages 797-808, February.
- Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-81.
- Rowlands, Ian H., 2005. "Envisaging feed-in tariffs for solar photovoltaic electricity: European lessons for Canada," Renewable and Sustainable Energy Reviews, Elsevier, vol. 9(1), pages 51-68, February.
- Meyer, Niels I., 2003. "European schemes for promoting renewables in liberalised markets," Energy Policy, Elsevier, vol. 31(7), pages 665-676, June.
- Ringel, Marc, 2006. "Fostering the use of renewable energies in the European Union: the race between feed-in tariffs and green certificates," Renewable Energy, Elsevier, vol. 31(1), pages 1-17.
- 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.
- del Rio, Pablo & Gual, Miguel A., 2007. "An integrated assessment of the feed-in tariff system in Spain," Energy Policy, Elsevier, vol. 35(2), pages 994-1012, February.
- Söderholm, Patrik, 2008. "The political economy of international green certificate markets," Energy Policy, Elsevier, vol. 36(6), pages 2051-2062, June.
- Verbruggen, Aviel, 2008. "Windfalls and other profits," Energy Policy, Elsevier, vol. 36(9), pages 3249-3251, September.
- Midttun, Atle & Gautesen, Kristian, 2007. "Feed in or certificates, competition or complementarity? Combining a static efficiency and a dynamic innovation perspective on the greening of the energy industry," Energy Policy, Elsevier, vol. 35(3), pages 1419-1422, March.
- Sáenz de Miera, Gonzalo & del Rio González, Pablo & Vizcaino, Ignacio, 2008. "Analysing the impact of renewable electricity support schemes on power prices: The case of wind electricity in Spain," Energy Policy, Elsevier, vol. 36(9), pages 3345-3359, September.
- Jacobsson, Staffan, 2008. "The emergence and troubled growth of a 'biopower' innovation system in Sweden," Energy Policy, Elsevier, vol. 36(4), pages 1491-1508, April.
- Verbruggen, Aviel, 2009. "Performance evaluation of renewable energy support policies, applied on Flanders' tradable certificates system," Energy Policy, Elsevier, vol. 37(4), pages 1385-1394, April.
- Rickerson, Wilson H. & Sawin, Janet L. & Grace, Robert C., 2007. "If the Shoe FITs: Using Feed-in Tariffs to Meet U.S. Renewable Electricity Targets," The Electricity Journal, Elsevier, vol. 20(4), pages 73-86, May.
- Verhaegen, Karolien & Meeus, Leonardo & Belmans, Ronnie, 2009. "Towards an international tradable green certificate system--The challenging example of Belgium," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(1), pages 208-215, January.
- Verbruggen, Aviel, 2004. "Tradable green certificates in Flanders (Belgium)," Energy Policy, Elsevier, vol. 32(2), pages 165-176, January.
- Madlener, Reinhard & Stagl, Sigrid, 2005. "Sustainability-guided promotion of renewable electricity generation," Ecological Economics, Elsevier, vol. 53(2), pages 147-167, April.
- Morthorst, P. E., 2000. "The development of a green certificate market," Energy Policy, Elsevier, vol. 28(15), pages 1085-1094, December.
- Fouquet, Doerte & Johansson, Thomas B., 2008. "European renewable energy policy at crossroads--Focus on electricity support mechanisms," Energy Policy, Elsevier, vol. 36(11), pages 4079-4092, November.
- Andersson, Bjorn A. & Jacobsson, Staffan, 2000. "Monitoring and assessing technology choice: the case of solar cells," Energy Policy, Elsevier, vol. 28(14), pages 1037-1049, November.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:38:y:2010:i:3:p:1255-1271. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.