Promoting Renewable Electricity Generation in Imperfect Markets: Price vs. Quantity Policies

Reinhard Madlener, Ilja Neustadt and Peter Zweifel ()
Additional contact information
Peter Zweifel: Socioeconomic Institute, University of Zurich

No 1/2008, FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)

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.

Keywords: Green certifcates; Renewable portfolio standard; Feed-in tarif (search for similar items in EconPapers)
JEL-codes: Q42 Q48 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2008-07, Revised 2011-11
New Economics Papers: this item is included in nep-ene and nep-env
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.fcn.eonerc.rwth-aachen.de/global/show_document.asp?id=aaaaaaaaaagvuwj Full text (application/pdf)

Related works:
Working Paper: Promoting renewable electricity generation in imperfect markets: price vs. quantity policies (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:fcnwpa:2008_001

Access Statistics for this paper

More papers in FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN) Contact information at EDIRC.
Bibliographic data for series maintained by Hendrik Schmitz ().