Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Electricity market’s policy instruments not a good combination

05.10.2011
While they may have similar environmental aims, the Swedish electricity market’s two policy instruments – tradable green certificates and carbon emissions allowances – are not easy bedfellows.

Although straightforward at first glance, the green certificate system turns out, on closer inspection, to be highly complicated and extremely obscure in terms of its effects, especially when combined with carbon emissions allowances.

Such is the opinion of Anna Widerberg, economics researcher at the University of Gothenburg, in her recently presented thesis on how the two policy instruments together affect the Swedish electricity market.

The Swedish electricity market features two policy instruments: tradable green certificates and carbon emissions allowances. Introduced in 2003, the green certificates aim to support the development and expansion of electricity production from renewable energy sources. Under this system all electricity suppliers must buy a specific quota of green certificates relative to the amount of electricity they supply.

This, in turn, provides electricity producers with an income from the certificates they sell. Trading in carbon emissions allowances, on the other hand, has affected all companies with carbon dioxide emissions since 2008, including electricity production from non-renewable energy sources, and aims to reduce all carbon emissions. Emissions allowances are allocated to the various companies on the basis of Sweden’s national emissions cap.

In other words, Sweden operates two completely different policy instruments with similar aims that together impact on the Swedish electricity market. In her research Widerberg has studied how they work together and come to the conclusion that this particular combination is not effective.

“A higher price for carbon emissions allowances leads to a reduction in electricity production from both renewable and non-renewable energy sources,” says Widerberg. “What’s more, it’s fairly difficult to actually work out the results needed to make decisions, and especially difficult to predict what will happen when changing the quotas.”

Widerberg recommends instead that the Swedish electricity market should be controlled through emissions trading alone, as this affects all sectors and markets.

“In isolation, each of the two systems would have worked, but together they’re less successful.”

The thesis ”Essays on Energy and Climate Policy – Green Certificates, Emissions Trading and Electricity Prices” was presented on 15 June 2011.

For further information, please contact: Anna Widerberg
Telephone: +46 (0)10 505 3130, mobile: +46 (0)72 230 4244
E-mail: anna.widerberg@economics.gu.se, anna.widerberg@afconsult.com

Helena Aaberg | idw
Further information:
http://www.gu.se
http://www.handels.gu.se/om_handelshogskolan/press/pressmeddelanden/nyheter-detalj/elmarknadens-styrmedel-ingen-lyckad-kombination-visa

More articles from Ecology, The Environment and Conservation:

nachricht International network connects experimental research in European waters
21.03.2017 | Leibniz-Institut für Gewässerökologie und Binnenfischerei (IGB)

nachricht World Water Day 2017: It doesn’t Always Have to Be Drinking Water – Using Wastewater as a Resource
17.03.2017 | ISOE - Institut für sozial-ökologische Forschung

All articles from Ecology, The Environment and Conservation >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Giant Magnetic Fields in the Universe

Astronomers from Bonn and Tautenburg in Thuringia (Germany) used the 100-m radio telescope at Effelsberg to observe several galaxy clusters. At the edges of these large accumulations of dark matter, stellar systems (galaxies), hot gas, and charged particles, they found magnetic fields that are exceptionally ordered over distances of many million light years. This makes them the most extended magnetic fields in the universe known so far.

The results will be published on March 22 in the journal „Astronomy & Astrophysics“.

Galaxy clusters are the largest gravitationally bound structures in the universe. With a typical extent of about 10 million light years, i.e. 100 times the...

Im Focus: Tracing down linear ubiquitination

Researchers at the Goethe University Frankfurt, together with partners from the University of Tübingen in Germany and Queen Mary University as well as Francis Crick Institute from London (UK) have developed a novel technology to decipher the secret ubiquitin code.

Ubiquitin is a small protein that can be linked to other cellular proteins, thereby controlling and modulating their functions. The attachment occurs in many...

Im Focus: Perovskite edges can be tuned for optoelectronic performance

Layered 2D material improves efficiency for solar cells and LEDs

In the eternal search for next generation high-efficiency solar cells and LEDs, scientists at Los Alamos National Laboratory and their partners are creating...

Im Focus: Polymer-coated silicon nanosheets as alternative to graphene: A perfect team for nanoelectronics

Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are less stable. Now researchers at the Technical University of Munich (TUM) have, for the first time ever, produced a composite material combining silicon nanosheets and a polymer that is both UV-resistant and easy to process. This brings the scientists a significant step closer to industrial applications like flexible displays and photosensors.

Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are...

Im Focus: Researchers Imitate Molecular Crowding in Cells

Enzymes behave differently in a test tube compared with the molecular scrum of a living cell. Chemists from the University of Basel have now been able to simulate these confined natural conditions in artificial vesicles for the first time. As reported in the academic journal Small, the results are offering better insight into the development of nanoreactors and artificial organelles.

Enzymes behave differently in a test tube compared with the molecular scrum of a living cell. Chemists from the University of Basel have now been able to...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

International Land Use Symposium ILUS 2017: Call for Abstracts and Registration open

20.03.2017 | Event News

CONNECT 2017: International congress on connective tissue

14.03.2017 | Event News

ICTM Conference: Turbine Construction between Big Data and Additive Manufacturing

07.03.2017 | Event News

 
Latest News

When Air is in Short Supply - Shedding light on plant stress reactions when oxygen runs short

23.03.2017 | Life Sciences

Researchers use light to remotely control curvature of plastics

23.03.2017 | Power and Electrical Engineering

Sea ice extent sinks to record lows at both poles

23.03.2017 | Earth Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>