Tradable green certificates in Flanders (Belgium)

Verbruggen, Aviel

doi:10.1016/s0301-4215(02)00262-8

Cited by 59 publications

(26 citation statements)

References 5 publications

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“…various types of "abnormal" profits that benefit electricity producers at the expense of electricity consumers (cf. Verbruggen, 2004Verbruggen, , 2008Finon and Perez, 2007). We define and discuss the concept of "rents" and our estimation method in further detail in Section 3.3.…”

Section: Criteria For Assessing the Performance Of The Swedish Tgc Symentioning

confidence: 99%

“…18 In previous literature, these rents are often referred to as "windfall profits" (e.g. Verbruggen, 2004;Finon and Perez, 2007), since they do not correspond to any extra achievement by the profiting parties and are largely uncontrolled by them.…”

Section: System Outcomes Ii: Equity and Rent Generationmentioning

confidence: 99%

“…We begin with outlining the expectations formed by the European Commission and the European Parliament in the second half of the 1990s, simply since these were very 1 The main disadvantages that are mentioned are that (1) the fixed tariff system can become very expensive for the electricity consumers/tax payers, (2) the windfall profits can be high, (3) the system cannot guarantee that a certain amount of renewable electricity will be provided at a certain time and (4) the incentives for cost reductions are sometimes insufficient. 2 For an exception, see Verbruggen (2004Verbruggen ( , 2009. 3 It would certainly be of interest to compare TGC systems with feed-in tariffs with regards to performance.…”

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confidence: 99%

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Are tradable green certificates a cost-efficient policy driving technical change or a rent-generating machine? Lessons from Sweden 2003–2008

2010

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In the European policy debate, tradable green certificates (TGC) have been suggested to be a superior regulatory framework for promoting the diffusion of renewable electricity technologies. The purpose of this paper is to assess the performance of the Swedish TGC system, contributing to the European debate on the suitability of different types of frameworks. The expectations of the TGC system were that it would: a) be effective in terms of increasing the supply of "green" electricity; b) do this in a cost effective manner (from both a social and a consumer perspective); c) generate an equitable distribution of costs and benefits and d) drive technical change. So far, it has performed adequately in terms of effectiveness and social cost effectiveness. However, consumer costs have been substantially higher than expected, very large rents are generated and, at best, it contributes marginally to technical change. Thus, a TGC framework should be selected if the overriding concern is to minimize short term social costs of reaching a certain goal with a high degree of predictability. However, it cannot be expected to also drive technical change, keep consumer costs down and be equitable. Such trade-offs need to be revealed and not obscured by analysts.

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Section: Criteria For Assessing the Performance Of The Swedish Tgc Symentioning

confidence: 99%

Section: System Outcomes Ii: Equity and Rent Generationmentioning

confidence: 99%

mentioning

confidence: 99%

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Are tradable green certificates a cost-efficient policy driving technical change or a rent-generating machine? Lessons from Sweden 2003–2008

2010

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“…For instance, feed-in tariffs can decline over time and thus introduce an incentive for cost reduction. In the same way, the design of obligation systems can be further refined to include technology tiers in order to create submarkets with more homogenous supply curves and therefore reduce excess profits (Verbruggen, 2004).…”

Section: Figure 22 Example Of a Res-e Supply Curvementioning

confidence: 99%

Review of International Experience with Renewable Energy Obligation Support Mechanisms

Wiser¹

2005

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The main policy instruments currently used in the EU Member States to achieve the targets set for electricity produced from renewable energy sources are: 1) the quota obligation system; 2) the feed-in tariff system; and 3) the tendering system. The current study aims to review the experience gained with the quota obligation system. The report provides an overview of the regions where obligation systems have been implemented and contains a detailed evaluation of the performance of the obligation systems in the USA, the UK and in Sweden. The obligation systems in these countries have been evaluated based on the following criteria:• Effectiveness • Market efficiency • Certainty for the renewable energy industry • Cost effectiveness • Stakeholder support for the obligation system, and • Equity.The evaluation of international experiences with the obligation system gives rise to a mixed picture. Although an obligation in theory is effective and cost effective, it seems too early to conclude that the system delivers these promises in practice. On the one hand this is due to the limited period of implementation that makes it hard to distinguish between the direct effect of the system and some teething problems that will be solved in due time. On the other hand, the conclusion can be drawn that the obligation is a complex system, which will only function well if designed carefully. It does seem worthwhile, however, to continue monitoring the experiences with the obligation system abroad, because this will further reveal whether the system is indeed effective and cost effective in practice. In the longer term, e.g. beyond 2010, the introduction of an obligation system in the Netherlands could be considered. Finally, as the design of support schemes is being improved, it appears that the basic concepts of both the obligation system and the feed in system have been refined in such a way that the two systems are gradually converging. An important difference between the two systems however remains, namely that an obligation system relies more on market forces whereas the feed-in system is based on a greater involvement of the government. 2

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“…Over the years, they have been introduced in a number of countries with liberalized electricity markets (e.g. Berry and Jaccard, 2001;Dinica and Arentsen, 2003;Langniss and Wiser, 2003;Lorenzoni, 2003;Nielsen and Jeppesen, 2003;Verbruggen, 2004;Fan et al, 2005;Nishio and Asano, 2006;Sáenz de Miera et al, 2008).…”

mentioning

confidence: 99%

Promoting Renewable Electricity Generation in Imperfect Markets: Price vs. Quantity Policies

Madlener

Neustadt²,

Zweifel

2008

SSRN Journal

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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. Terms of use: Documents in AbstractThe search for economically efficient policy instruments designed to promote the diffusion of renewable energy technologies in liberalized markets has led to the introduction of quota-based tradable 'green' certificate (TGC) schemes for renewable electricity. However, there is a debate about the pros and cons of TGC, a quantity control policy, compared to guaranteed feed-in tariffs, a price control policy. In this paper we contrast these two alternatives in terms of social welfare, taking into account that electricity markets are not perfectly competitive, and show that the price control policy dominates the quantity control policy in terms of social welfare.

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Tradable green certificates in Flanders (Belgium)

Cited by 59 publications

References 5 publications

Are tradable green certificates a cost-efficient policy driving technical change or a rent-generating machine? Lessons from Sweden 2003–2008

Are tradable green certificates a cost-efficient policy driving technical change or a rent-generating machine? Lessons from Sweden 2003–2008

Review of International Experience with Renewable Energy Obligation Support Mechanisms

Promoting Renewable Electricity Generation in Imperfect Markets: Price vs. Quantity Policies

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