Green tradable certificates versus feed-in tariffs in the promotion of renewable energy shares

Till Requate ()

Environmental Economics and Policy Studies, 2015, vol. 17, issue 2, 239 pages

Abstract: The paper analyzes the relationship between CO 2 mitigation policy and promotion policies designed to deploy renewable energy sources for electricity production (RES-E). If an emission cap is the only policy target, an optimal mix consisting of high and low carbon use of fossil fuels, deployment of RES-E, and energy savings can best be achieved by either setting a uniform carbon tax or by implementing a cap-and-trade system covering all CO 2 sources. An additional RES-E share target causes higher costs in achieving the cap. Conversely, a more ambitious emission target automatically increases the RES-E share. In a second step, we investigate different policies for inducing an RES-E quota. Such a quota can be efficiently achieved either by a system of tradable green certificates, budget-balanced FIT system, or budget-balancing premium system. We also show that differentiated, technology-specific FITs are not efficient. Copyright Society for Environmental Economics and Policy Studies and Springer Japan 2015

Keywords: Feed-in tariffs; Tradable green certificates; Premium systems; Emission cap; Cap and trade; L38; L51; L94; Q28; Q42; Q55 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (15)

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Working Paper: Green Tradable Certificates versus Feed-in Tariffs in the Promotion of Renewable Energy Shares (2014)
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DOI: 10.1007/s10018-014-0096-8

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