Cheat Electricity? The Political Economy of Green Electricity Delivery on the Dutch Market for Households and Small Business

J. A. M. Hufen
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J. A. M. Hufen: QA + Research and Consultancy, Boddens Hosangweg 83, 2481KX Woubrugge, The Netherlands

Sustainability, 2016, vol. 9, issue 1, 1-18

Abstract: The European Commission’s renewable energy directive introduced a market-based Guarantees of Origin (GO)-trade system that gives consumers the choice of buying “real” green energy. This has been successful, as the market share of Dutch households that buy green energy grew to 64% in 2015. However, societal organizations are dissatisfied with the green energy offered, categorizing it as “cheat” electricity. This article aims to solve this riddle of a successful product created under the GO-trade system but also heavily criticized. Research reveals a lively marketplace with buyers eager to buy green energy and energy producers offering a wide range of labels. Marketplace mechanisms are strongly influenced by political choices, and financial support for energy suppliers makes green energy a credible option. Societal groups, however, argue that the information provided is incomplete and misleading, that buying green energy does not impact positively on greenhouse gas reduction, and that better information and structural reform are required. The GO-trade system is strongly influenced by member states’ national energy politics. Societal organizations have helped to optimize the implementation of the GO-trade system in the Netherlands, but they are not expected to be able to support the creation of a level playing field in which an optimal GO-trade system will flourish.

Keywords: renewable energy directive; directive 2009/28; green electricity; cheat electricity; Guarantees of Origin; market-based system (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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