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Tradable white certificate schemes: what can we learn from tradable green certificate schemes?

Oikonomou, Vlasis and Mundaca, Luis LU (2008) In Energy Efficiency 1(3). p.211-232
Abstract
In this paper, we analyze the experiences gained from tradable green certificate (TGC) schemes and extract some policy lessons that can lead to a successful design of a market-based approach for energy efficiency improvement, alias tradable white certificate schemes. We use tradable green certificate schemes existing in the Netherlands and Sweden as case studies. Departing from an assessment of both TGC schemes, we identify several institutional and market aspects that have affected their performance. We conduct the analysis by addressing key evaluation criteria (i.e., cost and energy effectiveness, administrative burden, technological innovation, political feasibility, and transaction costs). It is not our intention to demonstrate to the... (More)
In this paper, we analyze the experiences gained from tradable green certificate (TGC) schemes and extract some policy lessons that can lead to a successful design of a market-based approach for energy efficiency improvement, alias tradable white certificate schemes. We use tradable green certificate schemes existing in the Netherlands and Sweden as case studies. Departing from an assessment of both TGC schemes, we identify several institutional and market aspects that have affected their performance. We conduct the analysis by addressing key evaluation criteria (i.e., cost and energy effectiveness, administrative burden, technological innovation, political feasibility, and transaction costs). It is not our intention to demonstrate to the reader a normative aspect of designing tradable white certificate schemes. Rather, we identify some key policy lessons which can be summarized as: a binding long-term target must be clearly expressed in terms of policy time frame and certainty, a proper liquid market must be ensured for tradability of certificates, the scheme should be technology neutral, transaction costs should be kept low, and the energy efficiency target should not only address ‘low hanging fruits’ but also promote innovation. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Tradable white certificates, Tradable green certificates, Renewable energy, Energy efficiency
in
Energy Efficiency
volume
1
issue
3
pages
211 - 232
publisher
Springer
external identifiers
  • scopus:48449088722
ISSN
1570-646X
DOI
10.1007/s12053-008-9017-7
language
English
LU publication?
yes
id
a8c8e6fe-8729-4186-a135-ff55110cb88d (old id 1278581)
date added to LUP
2009-01-19 13:12:40
date last changed
2017-10-22 03:51:15
@article{a8c8e6fe-8729-4186-a135-ff55110cb88d,
  abstract     = {In this paper, we analyze the experiences gained from tradable green certificate (TGC) schemes and extract some policy lessons that can lead to a successful design of a market-based approach for energy efficiency improvement, alias tradable white certificate schemes. We use tradable green certificate schemes existing in the Netherlands and Sweden as case studies. Departing from an assessment of both TGC schemes, we identify several institutional and market aspects that have affected their performance. We conduct the analysis by addressing key evaluation criteria (i.e., cost and energy effectiveness, administrative burden, technological innovation, political feasibility, and transaction costs). It is not our intention to demonstrate to the reader a normative aspect of designing tradable white certificate schemes. Rather, we identify some key policy lessons which can be summarized as: a binding long-term target must be clearly expressed in terms of policy time frame and certainty, a proper liquid market must be ensured for tradability of certificates, the scheme should be technology neutral, transaction costs should be kept low, and the energy efficiency target should not only address ‘low hanging fruits’ but also promote innovation.},
  author       = {Oikonomou, Vlasis and Mundaca, Luis},
  issn         = {1570-646X},
  keyword      = {Tradable white certificates,Tradable green certificates,Renewable energy,Energy efficiency},
  language     = {eng},
  number       = {3},
  pages        = {211--232},
  publisher    = {Springer},
  series       = {Energy Efficiency},
  title        = {Tradable white certificate schemes: what can we learn from tradable green certificate schemes?},
  url          = {http://dx.doi.org/10.1007/s12053-008-9017-7},
  volume       = {1},
  year         = {2008},
}