A general equilibrium cost-bene t rule for green certi ficates

Bengt Kriström ()
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Bengt Kriström: CERE and the Department of Forest Economics, SLU, Postal: Department of Economics, Umeå University, S-901 87, Umeå, Sweden, http://www.cere.se/

No 2016:19, CERE Working Papers from CERE - the Center for Environmental and Resource Economics

Abstract: I embed a electricity certificate system, mandating that a certain fraction of total electricity production must come from renewable sources, in a stylized competitive economy and derive a general equilibrium cost-benefit rule from perturbing the regulation. The welfare consequences (ignoring distributional effects) of the perturbation are compactly summarized in a simple formula.

Keywords: general equilibrium; cost-benefit (search for similar items in EconPapers)
JEL-codes: D50 D61 (search for similar items in EconPapers)
Pages: 3 pages
Date: 2016-12-09
New Economics Papers: this item is included in nep-ene and nep-env
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