Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/204395 
Year of Publication: 
2016
Series/Report no.: 
IFRO Working Paper No. 2016/03
Publisher: 
University of Copenhagen, Department of Food and Resource Economics (IFRO), Copenhagen
Abstract: 
We formulate a model with black, green and white certificates markets that function in conjunction with an electricity market. The markets function well in the sense that a common equilibrium solution exists, where all targets are satisfied (e.g. share of green electricity and share of energy saving/ efficiency increase.) The equilibrium solution adapts to changing targets (e.g. harsher target on energy saving), but it is in general impossible to tell whether this will lead to more, less, or unchanged consumption of "black", "green" or "white" electricity. These, markets give thus a poor guidance for future investments in green and white electricity. In order to get clear cut results, specific assumptions of parameter values and functional forms are needed. An example of this, based on a calibrated model founded on Norwegian data, is provided in the article. Also, gains and losses in terms of consumer's and producer's surpluses are calculated.
Subjects: 
renewable energy
electricity
Green Certificates
White Certificates
JEL: 
C70
Q28
Q42
Q48
Document Type: 
Working Paper

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