Why should support schemes for renewable electricity complement the EU emissions trading scheme?

Lehmann, Paul; Gawel, Erik

doi:10.1016/j.enpol.2012.10.018

Cited by 146 publications

(88 citation statements)

References 116 publications

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“…Interactions between climate and energy policy are discussed for example in Oikonomou & Jepma (2007), Oikonomou et al (2010), Sorrell & Sijm (2003), Sorrell (2003), Konidari & Mavrakis (2006), Lehmann (2012), Lehmann & Gawel (2012), Böhringer et al (2009), De Jonghe et al (2009), del Rio (2007, Matthes (2010) and Rathmann (2007). A common research finding is that energy and climate policy interactions can have either positive or negative effects on achieving a specific emission target (Oikonomou et al, 2010).…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of electricity demand reduction policies on the EU-ETS: Modelling electricity and carbon prices and the effect on industrial competitiveness

et al. 2013

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The European electricity market is linked to a carbon market with a fixed cap that limits greenhouse gas emissions. At the same time, a number of energy efficiency policy instruments in the EU aim at reducing the electricity consumption. This article explores the interactions between the EU's carbon market on the one hand and instruments specifically targeted towards energy end-use efficiency on the other hand. Our theoretical analysis shows how electricity demand reduction triggered by energy efficiency policy instruments affects the emission trading scheme: Without adjustments of the fixed cap, decreasing electricity demand reduces the carbon price without reducing total emissions. With lower carbon prices, costly low emission processes will be substituted by cheaper high emitting processes. Possible electricity and carbon price effects of electricity demand reduction scenarios under various carbon caps are quantified with a long-term electricity market simulation model. The results show that electricity efficiency policies allow for a significant reduction of the carbon cap: Compared to the 2005 emission level, 30% emission reductions can be achieved by 2020 within the emission trading scheme with similar or even lower costs for the industrial sector than were expected when the cap was initially set for a 21% emission reduction.

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Section: Literature Reviewmentioning

confidence: 99%

The impact of electricity demand reduction policies on the EU-ETS: Modelling electricity and carbon prices and the effect on industrial competitiveness

et al. 2013

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“…In particular, it has sometimes been argued that subsidy support to renewables is inappropriate within an emissions trading scheme. The basic argument is that the abatement level is set by the cap, and that renewables subsides therefore do not result in additional carbon reductions, but rather distort abatement away from the optimum (for various views on this argument, see : Fankhauser et al (2011);Lehmann and Gawel (2013);OECD (2003)). However, such arguments have typically been made on the basis of static emissions profiles of technologies, assuming that no emissions are associated with installation and deployment.…”

Section: Relevance Of Dynamic Mitigation For Energy and Climate Policymentioning

confidence: 99%

Exploring the macro-scale CO2 mitigation potential of photovoltaics and wind energy in Europe's energy transition

Usubiaga

Acosta-Fernández

McDowall³

et al. 2017

Energy Policy

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Replacing traditional technologies by renewables can lead to an increase of emissions during early diffusion stages if the emissions avoided during the use phase are exceeded by those associated with the deployment of new units. Based on historical developments and on counterfactual scenarios in which we assume that selected renewable technologies did not diffuse, we conclude that onshore and offshore wind energy have had a positive contribution to climate change mitigation since the beginning of their diffusion in EU27. In contrast, photovoltaic panels did not pay off from an environmental standpoint until very recently, since the benefits expected at the individual plant level The analysis demonstrates that the time-profile of renewable energy emissions can be relevant for target-setting and detailed policy design, particularly when renewable energy strategies are pursued in concert with carbon pricing through cap-and-trade systems.

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“…In other words, they are characterized by a very high degree of path dependency (Goldthau and Sovacool 2011), also termed "carbon lock-in" (Unruh 2000). Considering the long-term cost scenarios, it may, therefore, be beneficial to subsidize current RES-deployment in order to overcome the path dependency in energy systems Lehmann and Gawel 2013).…”

Section: Ets and Res-support: Effectiveness And Efficiency Of The Polmentioning

confidence: 99%

A public choice view on the climate and energy policy mix in the EU — How do the emissions trading scheme and support for renewable energies interact?

2014

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Why should support schemes for renewable electricity complement the EU emissions trading scheme?

Cited by 146 publications

References 116 publications

The impact of electricity demand reduction policies on the EU-ETS: Modelling electricity and carbon prices and the effect on industrial competitiveness

The impact of electricity demand reduction policies on the EU-ETS: Modelling electricity and carbon prices and the effect on industrial competitiveness

Exploring the macro-scale CO2 mitigation potential of photovoltaics and wind energy in Europe's energy transition

A public choice view on the climate and energy policy mix in the EU — How do the emissions trading scheme and support for renewable energies interact?

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