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
Helena Aaberg | idw
Plant seeds survive machine washing - Dispersal of invasive plants with clothes
11.09.2018 | Gesellschaft für Ökologie e.V.
Air pollution leads to cardiovascular diseases
21.08.2018 | Universitätsmedizin der Johannes Gutenberg-Universität Mainz
Scientists at the Max Planck Institute for Polymer Research (MPI-P) in Mainz (Germany) together with scientists from Dresden, Leipzig, Sofia (Bulgaria) and Madrid (Spain) have now developed and characterized a novel, metal-organic material which displays electrical properties mimicking those of highly crystalline silicon. The material which can easily be fabricated at room temperature could serve as a replacement for expensive conventional inorganic materials used in optoelectronics.
Silicon, a so called semiconductor, is currently widely employed for the development of components such as solar cells, LEDs or computer chips. High purity...
Augsburg chemists present a new technology for compressing, storing and transporting highly volatile gases in porous frameworks/New prospects for gas-powered vehicles
Storage of highly volatile gases has always been a major technological challenge, not least for use in the automotive sector, for, for example, methane or...
When we put water in a freezer, water molecules crystallize and form ice. This change from one phase of matter to another is called a phase transition. While this transition, and countless others that occur in nature, typically takes place at the same fixed conditions, such as the freezing point, one can ask how it can be influenced in a controlled way.
We are all familiar with such control of the freezing transition, as it is an essential ingredient in the art of making a sorbet or a slushy. To make a cold...
Thin organic layers provide machines and equipment with new functions. They enable, for example, tiny energy recuperators. In future, these will be installed...
Das Zusammenspiel aus Struktur und Dynamik bestimmt die Funktion von Proteinen, den molekularen Werkzeugen der Zelle. Durch Fortschritte in der...
17.10.2018 | Event News
16.10.2018 | Event News
02.10.2018 | Event News
18.10.2018 | Life Sciences
17.10.2018 | Trade Fair News
17.10.2018 | Life Sciences