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 Upcycling 'fast fashion' to reduce waste and pollution
03.04.2017 | American Chemical Society

nachricht Litter is present throughout the world’s oceans: 1,220 species affected
27.03.2017 | Alfred-Wegener-Institut, Helmholtz-Zentrum für Polar- und Meeresforschung

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: Making lightweight construction suitable for series production

More and more automobile companies are focusing on body parts made of carbon fiber reinforced plastics (CFRP). However, manufacturing and repair costs must be further reduced in order to make CFRP more economical in use. Together with the Volkswagen AG and five other partners in the project HolQueSt 3D, the Laser Zentrum Hannover e.V. (LZH) has developed laser processes for the automatic trimming, drilling and repair of three-dimensional components.

Automated manufacturing processes are the basis for ultimately establishing the series production of CFRP components. In the project HolQueSt 3D, the LZH has...

Im Focus: Wonder material? Novel nanotube structure strengthens thin films for flexible electronics

Reflecting the structure of composites found in nature and the ancient world, researchers at the University of Illinois at Urbana-Champaign have synthesized thin carbon nanotube (CNT) textiles that exhibit both high electrical conductivity and a level of toughness that is about fifty times higher than copper films, currently used in electronics.

"The structural robustness of thin metal films has significant importance for the reliable operation of smart skin and flexible electronics including...

Im Focus: Deep inside Galaxy M87

The nearby, giant radio galaxy M87 hosts a supermassive black hole (BH) and is well-known for its bright jet dominating the spectrum over ten orders of magnitude in frequency. Due to its proximity, jet prominence, and the large black hole mass, M87 is the best laboratory for investigating the formation, acceleration, and collimation of relativistic jets. A research team led by Silke Britzen from the Max Planck Institute for Radio Astronomy in Bonn, Germany, has found strong indication for turbulent processes connecting the accretion disk and the jet of that galaxy providing insights into the longstanding problem of the origin of astrophysical jets.

Supermassive black holes form some of the most enigmatic phenomena in astrophysics. Their enormous energy output is supposed to be generated by the...

Im Focus: A Quantum Low Pass for Photons

Physicists in Garching observe novel quantum effect that limits the number of emitted photons.

The probability to find a certain number of photons inside a laser pulse usually corresponds to a classical distribution of independent events, the so-called...

Im Focus: Microprocessors based on a layer of just three atoms

Microprocessors based on atomically thin materials hold the promise of the evolution of traditional processors as well as new applications in the field of flexible electronics. Now, a TU Wien research team led by Thomas Müller has made a breakthrough in this field as part of an ongoing research project.

Two-dimensional materials, or 2D materials for short, are extremely versatile, although – or often more precisely because – they are made up of just one or a...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Expert meeting “Health Business Connect” will connect international medical technology companies

20.04.2017 | Event News

Wenn der Computer das Gehirn austrickst

18.04.2017 | Event News

7th International Conference on Crystalline Silicon Photovoltaics in Freiburg on April 3-5, 2017

03.04.2017 | Event News

 
Latest News

Bare bones: Making bones transparent

27.04.2017 | Life Sciences

Study offers new theoretical approach to describing non-equilibrium phase transitions

27.04.2017 | Physics and Astronomy

From volcano's slope, NASA instrument looks sky high and to the future

27.04.2017 | Earth Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>