Energy savings certificates: A market-based tool for reducing greenhouse gas emissions

Vine, Edward; Hamrin, Jan

doi:10.1016/j.enpol.2007.10.001

Cited by 44 publications

(20 citation statements)

References 3 publications

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“…Bertoldi and Huld (2006) discuss some implementation issues as well as the interaction of TWC schemes with other trading systems, a question that we do not address either. Vine and Hamrin (2008) present the experience to date with TWC schemes and outline potential opportunities in the United States. Farinelli et al (2005), Mundaca (2008) and Oikonomou et al (2007) quantify the potential for a TWC scheme, in Europe for the first two papers and in the Netherlands for the latter.…”

Section: Introductionmentioning

confidence: 99%

Efficiency and distributional impacts of tradable white certificates compared to taxes, subsidies and regulations

Giraudet¹,

Quirion²

2008

Revue d'Économie Politique

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Energy suppliers have to fund a given quantity of energy efficiency measures, or to buy so-called "white certificates" from other suppliers who exceed their target. We develop a partial equilibrium model to compare TWC schemes to other policy instruments for energy efficiency, i.e., energy taxes, subsidies on energy-saving goods and regulations fixing a minimum level of energy-efficiency. The model features an endogenous level of energy service and we analyse the influence of the substitutability between energy and energy-saving goods to produce the energy service, as well as the influence of the elasticity of demand for the energy service. We show that if the level of energy service consumption is fixed, a TWC scheme is as efficient as an energy tax, but that it is much less otherwise because it does not provide the optimal incentive to reduce the consumption of energy service. This inefficiency is worsened if energy suppliers' targets are fixed rather than proportional to the suppliers' current output. On the other hand, compared to taxes, a TWC scheme allows reaching a given level of energy savings with a lower increase in the consumers' energy price, which may ease its implementation. Terms of use: Documents in

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Section: Introductionmentioning

confidence: 99%

Efficiency and distributional impacts of tradable white certificates compared to taxes, subsidies and regulations

Giraudet¹,

Quirion²

2008

Revue d'Économie Politique

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“…Deemed savings methods use historical or so called "ex-ante" data (predetermined from previous similar projects or established engineering methods), to make assumptions about the savings a given project will create. They may incorporate assumptions or default factors for free ridership and for the persistence of energy savings, or how long they will last (Vine and Hamrin 2008). The method works particularly well for established technologies for which data tends to be more reliable, such as lighting measures.…”

Section: Measurement and Verificationmentioning

confidence: 99%

“…It is generally anticipated that ESCs add transaction costs to an EEPS scheme (see, for example, Vine and Hamrin 2008). To cite one example, perceived high transaction costs in the first phase of the Energy Efficient Commitment in Great Britain -about 10% of the total costs for lighting projects and about 30% for insulation projects -were found to slightly reduce levels of trading (Mundaca 2007).…”

Section: Criticisms Challenges and Hurdlesmentioning

confidence: 99%

Considerations for Emerging Markets for Energy Savings Certificates

Friedman¹,

Bird²,

Barbose³

2008

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“…We update the comparative analysis quoted above and supplement them occasionally with insights from past and present energy efficiency policy in the United States, where DSM programs have been expanded in the form of energy efficiency resource standards (EERS) (Vine and Hamrin, 2008;Loper et al, 2010). We stand from both private and collective point of view and base our comparative analysis on the following assessment criteria 5 , inter-dependent but not necessarily convergent:…”

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confidence: 99%

On the Road to a Unified Market for Energy Efficiency: The Contribution of White Certificates Schemes

Giraudet

Finon

2010

SSRN Journal

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SummaryWhite certificates schemes mandate competing energy companies to promote energy efficiency with flexibility mechanisms, including the trading of energy savings. So far, stylized facts are lacking and outcomes are mainly country-specific. By comparing results of British, Italian and French experiences, we attempt to identify the core determinants of their performances. We show that (i) white certificates schemes are depicted in theoretical works as mandatory subsidies on energy efficiency goods recovered by an end-use energy tax, whereby white certificates exchanges are not a central feature; (ii) at current stages, existing schemes are cost-effective and economically efficient, with large discrepancies though; (iii) the hybrid subsidy-tax mechanism seems valid but conditional to cost pass through permissions; otherwise, obliged energy companies merely promote information on the "downstream" side (i.e. at the consumer level); (iv) although white certificates exchange between different types of actors involved can be important as in Italy, trade among obliged companies is negligible; instead, flexibility sustains vertical relationships between obliged parties and "upstream" partners (i.e. installers, energy service companies). In this respect, we support the view that white certificates schemes are a policy instrument of multi-functional nature (subsidisation, information, technology diffusion), whose static and dynamic efficiency depends upon the consistency between a proper definition of long-term energy savings, the appropriate cost-recovery permission and a fine coordination with other instruments. We finally propose a four stages deployment pattern, along which fragmented markets for energy efficient technologies get closer to create a unified market delivering energy efficiency as a homogeneous good. We show that (i) white certificates schemes are depicted in theoretical works as mandatory subsidies on energy efficiency goods recovered by an end-use energy tax, whereby white certificates exchanges are not a central feature; (ii) at current stages, existing schemes are cost-effective and economically efficient, with large discrepancies though; (iii) the hybrid subsidy-tax mechanism seems valid but conditional to cost pass through permissions; otherwise, obliged energy companies merely promote information on the "downstream" side (i.e. at the consumer level); (iv) although white certificates exchange between different types of actors involved can be important as in Italy, trade among obliged companies is negligible; instead, flexibility sustains vertical relationships between obliged parties and "upstream" partners (i.e. installers, energy service companies).In this respect, we support the view that white certificates schemes are a policy instrument of multi-functional nature (subsidisation, information, technology diffusion), whose static and dynamic efficiency depends upon the consistency between a proper definition of long-term energy savings, the appropriate cost-recovery permission and a fine coord...

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Energy savings certificates: A market-based tool for reducing greenhouse gas emissions

Cited by 44 publications

References 3 publications

Efficiency and distributional impacts of tradable white certificates compared to taxes, subsidies and regulations

Efficiency and distributional impacts of tradable white certificates compared to taxes, subsidies and regulations

Considerations for Emerging Markets for Energy Savings Certificates

On the Road to a Unified Market for Energy Efficiency: The Contribution of White Certificates Schemes

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