IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v62y2016icp372-381.html
   My bibliography  Save this article

When outcomes are the reflection of the analysis criteria: A review of the tradable green certificate assessments

Author

Listed:
  • Darmani, Anna
  • Rickne, Annika
  • Hidalgo, Antonio
  • Arvidsson, Niklas

Abstract

The tradable green certificates (TGC) framework is a prevalent policy support scheme enacted to stimulate investments in electricity from renewable energy sources (RES-E). In several countries, including Sweden and Norway, the TGC framework is currently under reevaluation. In this process, academic literature plays a crucial role in reflecting the outcomes of this policy framework. The outcomes, however, are often limited by the analysis criteria, which reflect what has been accounted for or disregarded when assessing the performance of the TGC framework. The analysis criteria also stress what is considered as a successful outcome. Given the importance of such criteria, this paper presents an extensive and systemic literature review of academic publications assessing the performance of the TGC framework. The findings are to provide an overview of the publications’ analysis criteria and outline their outcomes. We also provide descriptive statistics for the publications and examine the average citation record of the publications that use various analysis criteria in order to explore their relative impact on later studies. These findings can help policymakers put the assessments into perspective when reevaluating a country׳s TGC system. They also suggest several intriguing directions for future studies in this field.

Suggested Citation

  • Darmani, Anna & Rickne, Annika & Hidalgo, Antonio & Arvidsson, Niklas, 2016. "When outcomes are the reflection of the analysis criteria: A review of the tradable green certificate assessments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 372-381.
  • Handle: RePEc:eee:rensus:v:62:y:2016:i:c:p:372-381
    DOI: 10.1016/j.rser.2016.04.037
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032116300545
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Martin L. Weitzman, 1974. "Prices vs. Quantities," Review of Economic Studies, Oxford University Press, vol. 41(4), pages 477-491.
    2. 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.
    3. del Río, Pablo & Bleda, Mercedes, 2012. "Comparing the innovation effects of support schemes for renewable electricity technologies: A function of innovation approach," Energy Policy, Elsevier, vol. 50(C), pages 272-282.
    4. Gaul, Chip & Carley, Sanya, 2012. "Solar set asides and renewable electricity certificates: Early lessons from North Carolina's experience with its renewable portfolio standard," Energy Policy, Elsevier, vol. 48(C), pages 460-469.
    5. Gupta, Sandeep Kumar & Purohit, Pallav, 2013. "Renewable energy certificate mechanism in India: A preliminary assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 380-392.
    6. Mary M. Crossan & Marina Apaydin, 2010. "A Multi-Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1154-1191, September.
    7. Ford, Andrew & Vogstad, Klaus & Flynn, Hilary, 2007. "Simulating price patterns for tradable green certificates to promote electricity generation from wind," Energy Policy, Elsevier, vol. 35(1), pages 91-111, January.
    8. Kent, Anthony & Mercer, David, 2006. "Australia's mandatory renewable energy target (MRET): an assessment," Energy Policy, Elsevier, vol. 34(9), pages 1046-1062, June.
    9. Fagiani, Riccardo & Barquín, Julián & Hakvoort, Rudi, 2013. "Risk-based assessment of the cost-efficiency and the effectivity of renewable energy support schemes: Certificate markets versus feed-in tariffs," Energy Policy, Elsevier, vol. 55(C), pages 648-661.
    10. Fagiani, Riccardo & Richstein, Jörn C. & Hakvoort, Rudi & De Vries, Laurens, 2014. "The dynamic impact of carbon reduction and renewable support policies on the electricity sector," Utilities Policy, Elsevier, vol. 28(C), pages 28-41.
    11. Markard, Jochen & Truffer, Bernhard, 2006. "Innovation processes in large technical systems: Market liberalization as a driver for radical change?," Research Policy, Elsevier, vol. 35(5), pages 609-625, June.
    12. Verbruggen, Aviel & Lauber, Volkmar, 2012. "Assessing the performance of renewable electricity support instruments," Energy Policy, Elsevier, vol. 45(C), pages 635-644.
    13. Fridolfsson, Sven-Olof & Tangerås, Thomas P., 2013. "A reexamination of renewable electricity policy in Sweden," Energy Policy, Elsevier, vol. 58(C), pages 57-63.
    14. Eirik Amundsen & Fridrik Baldursson & Jørgen Mortensen, 2006. "Price Volatility and Banking in Green Certificate Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(4), pages 259-287, December.
    15. Madlener, Reinhard & Stagl, Sigrid, 2005. "Sustainability-guided promotion of renewable electricity generation," Ecological Economics, Elsevier, vol. 53(2), pages 147-167, April.
    16. Eirik S. Amundsen and Lars Bergman, 2012. "Green Certificates and Market Power on the Nordic Power Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    17. MacGill, Iain, 2010. "Electricity market design for facilitating the integration of wind energy: Experience and prospects with the Australian National Electricity Market," Energy Policy, Elsevier, vol. 38(7), pages 3180-3191, July.
    18. Diaz-Rainey, Ivan & Ashton, John K., 2008. "Stuck between a ROC and a hard place? Barriers to the take up of green energy in the UK," Energy Policy, Elsevier, vol. 36(8), pages 3043-3051, August.
    19. Alishahi, Ehsan & Moghaddam, Mohsen P. & Sheikh-El-Eslami, Mohammad K., 2011. "An investigation on the impacts of regulatory interventions on wind power expansion in generation planning," Energy Policy, Elsevier, vol. 39(8), pages 4614-4623, August.
    20. Tanaka, Makoto & Chen, Yihsu, 2013. "Market power in renewable portfolio standards," Energy Economics, Elsevier, vol. 39(C), pages 187-196.
    21. Gillenwater, Michael, 2013. "Probabilistic decision model of wind power investment and influence of green power market," Energy Policy, Elsevier, vol. 63(C), pages 1111-1125.
    22. Mitchell, C. & Bauknecht, D. & Connor, P.M., 2006. "Effectiveness through risk reduction: a comparison of the renewable obligation in England and Wales and the feed-in system in Germany," Energy Policy, Elsevier, vol. 34(3), pages 297-305, February.
    23. Haas, Reinhard & Panzer, Christian & Resch, Gustav & Ragwitz, Mario & Reece, Gemma & Held, Anne, 2011. "A historical review of promotion strategies for electricity from renewable energy sources in EU countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1003-1034, February.
    24. Reuter, Wolf Heinrich & Szolgayová, Jana & Fuss, Sabine & Obersteiner, Michael, 2012. "Renewable energy investment: Policy and market impacts," Applied Energy, Elsevier, vol. 97(C), pages 249-254.
    25. Karakaya, Emrah & Sriwannawit, Pranpreya, 2015. "Barriers to the adoption of photovoltaic systems: The state of the art," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 60-66.
    26. Agnolucci, Paolo, 2007. "The effect of financial constraints, technological progress and long-term contracts on tradable green certificates," Energy Policy, Elsevier, vol. 35(6), pages 3347-3359, June.
    27. 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.
    28. Unger, Thomas & Ahlgren, Erik O., 2005. "Impacts of a common green certificate market on electricity and CO2-emission markets in the Nordic countries," Energy Policy, Elsevier, vol. 33(16), pages 2152-2163, November.
    29. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
    30. Hain, J. J. & Ault, G. W. & Galloway, S. J & Cruden, A. & McDonald, J. R., 2005. "Additional renewable energy growth through small-scale community orientated energy policies," Energy Policy, Elsevier, vol. 33(9), pages 1199-1212, June.
    31. Shrimali, Gireesh & Tirumalachetty, Sumala, 2013. "Renewable energy certificate markets in India—A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 702-716.
    32. 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.
    33. Finon, Dominique & Perez, Yannick, 2007. "The social efficiency of instruments of promotion of renewable energies: A transaction-cost perspective," Ecological Economics, Elsevier, vol. 62(1), pages 77-92, April.
    34. De Jonghe, Cedric & Delarue, Erik & Belmans, Ronnie & D'haeseleer, William, 2009. "Interactions between measures for the support of electricity from renewable energy sources and CO2 mitigation," Energy Policy, Elsevier, vol. 37(11), pages 4743-4752, November.
    35. 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.
    36. Jacobsson, Staffan & Lauber, Volkmar, 2006. "The politics and policy of energy system transformation--explaining the German diffusion of renewable energy technology," Energy Policy, Elsevier, vol. 34(3), pages 256-276, February.
    37. Marchenko, O.V., 2008. "Modeling of a green certificate market," Renewable Energy, Elsevier, vol. 33(8), pages 1953-1958.
    38. Jaraitė, Jūratė & Kažukauskas, Andrius, 2013. "The profitability of electricity generating firms and policies promoting renewable energy," Energy Economics, Elsevier, vol. 40(C), pages 858-865.
    39. Wang, Yan, 2006. "Renewable electricity in Sweden: an analysis of policy and regulations," Energy Policy, Elsevier, vol. 34(10), pages 1209-1220, July.
    40. 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.
    41. Beliën, Jeroen & De Boeck, Liesje & Colpaert, Jan & Cooman, Gert, 2013. "The best time to invest in photovoltaic panels in Flanders," Renewable Energy, Elsevier, vol. 50(C), pages 348-358.
    42. 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.
    43. Dave Toke, 2005. "Are green electricity certificates the way forward for renewable energy? An evaluation of the United Kingdom’s Renewables Obligation in the context of international comparisons," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 23(3), pages 361-374, June.
    44. Verbruggen, Aviel & Lauber, Volkmar, 2009. "Basic concepts for designing renewable electricity support aiming at a full-scale transition by 2050," Energy Policy, Elsevier, vol. 37(12), pages 5732-5743, December.
    45. Boomsma, Trine Krogh & Meade, Nigel & Fleten, Stein-Erik, 2012. "Renewable energy investments under different support schemes: A real options approach," European Journal of Operational Research, Elsevier, vol. 220(1), pages 225-237.
    46. Haas, Reinhard & Resch, Gustav & Panzer, Christian & Busch, Sebastian & Ragwitz, Mario & Held, Anne, 2011. "Efficiency and effectiveness of promotion systems for electricity generation from renewable energy sources – Lessons from EU countries," Energy, Elsevier, vol. 36(4), pages 2186-2193.
    47. Raadal, Hanne Lerche & Dotzauer, Erik & Hanssen, Ole Jørgen & Kildal, Hans Petter, 2012. "The interaction between Electricity Disclosure and Tradable Green Certificates," Energy Policy, Elsevier, vol. 42(C), pages 419-428.
    48. Voogt, M.H. & Uyterlinde, M.A., 2006. "Cost effects of international trade in meeting EU renewable electricity targets," Energy Policy, Elsevier, vol. 34(3), pages 352-364, February.
    49. Ericsson, Karin & Nilsson, Lars J. & Nilsson, Måns, 2011. "New energy strategies in the Swedish pulp and paper industry--The role of national and EU climate and energy policies," Energy Policy, Elsevier, vol. 39(3), pages 1439-1449, March.
    50. Bergek, Anna & Jacobsson, Staffan, 2010. "Are tradable green certificates a cost-efficient policy driving technical change or a rent-generating machine? Lessons from Sweden 2003-2008," Energy Policy, Elsevier, vol. 38(3), pages 1255-1271, March.
    51. del Río, Pablo & Unruh, Gregory, 2007. "Overcoming the lock-out of renewable energy technologies in Spain: The cases of wind and solar electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(7), pages 1498-1513, September.
    52. Kildegaard, Arne, 2008. "Green certificate markets, the risk of over-investment, and the role of long-term contracts," Energy Policy, Elsevier, vol. 36(9), pages 3413-3421, September.
    53. Tolón-Becerra, A. & Lastra-Bravo, X.B. & Steenberghen, T. & Debecker, B., 2011. "Current situation, trends and potential of renewable energy in Flanders," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4400-4409.
    54. Söderholm, Patrik & Sundqvist, Thomas, 2007. "Empirical challenges in the use of learning curves for assessing the economic prospects of renewable energy technologies," Renewable Energy, Elsevier, vol. 32(15), pages 2559-2578.
    55. 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.
    56. Darmani, Anna & Arvidsson, Niklas & Hidalgo, Antonio & Albors, Jose., 2014. "What drives the development of renewable energy technologies? Toward a typology for the systemic drivers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 834-847.
    57. Högselius, Per & Kaijser, Arne, 2010. "The politics of electricity deregulation in Sweden: the art of acting on multiple arenas," Energy Policy, Elsevier, vol. 38(5), pages 2245-2254, May.
    58. Cameron Hepburn, 2006. "Regulation by Prices, Quantities, or Both: A Review of Instrument Choice," Oxford Review of Economic Policy, Oxford University Press, vol. 22(2), pages 226-247, Summer.
    59. Shereef, R.M. & Khaparde, S.A., 2013. "Current status of REC mechanism in India and possible policy modifications to way forward," Energy Policy, Elsevier, vol. 61(C), pages 1443-1451.
    60. Kumar, Rajesh & Agarwala, Arun, 2013. "Renewable Energy Certificate and Perform, Achieve, Trade mechanisms to enhance the energy security for India," Energy Policy, Elsevier, vol. 55(C), pages 669-676.
    61. Karakaya, Emrah & Hidalgo, Antonio & Nuur, Cali, 2015. "Motivators for adoption of photovoltaic systems at grid parity: A case study from Southern Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 1090-1098.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:enepol:v:106:y:2017:i:c:p:560-578 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:62:y:2016:i:c:p:372-381. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.