Template-Type: ReDIF-Paper 1.0
Author-Name: Eirik S. Amundsen
Author-Name-First: Eirik S.
Author-Name-Last: Amundsen
Author-Email: Eirik.amundsen@uib.no 
Author-Workplace-Name: Department of  Economics, the University of Bergen
Author-Workplace-Name: Department of Food and Resource Economics, University of Copenhagen
Author-Name: Torstein Bye
Author-Name-First: Torstein
Author-Name-Last: Bye
Author-Email: torstein.arne.bye@ssb.no
Author-Workplace-Name: Statistics Norway
Author-Workplace-Name: Norwegian University of Life Sciences
Title: Simultaneous use of black, green, and white certificates systems: A rather messy business
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.
Length: 25 pages
Creation-Date:  2016-06
File-URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2016/IFRO_WP_2016_03.pdf
File-Format: Application/pdf
Number: 2016/03
Classification-JEL: C70; Q28; Q42; Q48
Keywords: renewable energy, electricity, Green Certificates, White Certificates
Handle: RePEc:foi:wpaper:2016_03