Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76137
Authors: 
Madlener, Reinhard
Gao, Weiyu
Neustadt, Ilja
Zweifel, Peter
Year of Publication: 
2009
Series/Report no.: 
Working Paper, Socioeconomic Institute, University of Zurich 0809
Abstract: 
The 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.
Subjects: 
Green certifcates
Renewable portfolio standard
Feed-in tarif
JEL: 
Q42
Q48
Document Type: 
Working Paper

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