Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192563 
Year of Publication: 
2009
Series/Report no.: 
Discussion Papers No. 581
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
Tradable black (CO2) and green (renewables) quotas gain in popularity and stringency within climate policies of many OECD countries. The overlapping regulation through both instruments, however, may have important adverse economic implications. Based on stylized theoretical analysis and substantiated with numerical model simulations for the German electricity market, we show that a green quota imposed on top of a black quota does not only induce substantial excess cost but serves the dirtiest power technologies as compared to a black quota regime only.
Subjects: 
Emissions Trading
Tradable Green Certificates
Overlapping Regulation
JEL: 
D61
H21
H22
Q58
Document Type: 
Working Paper

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