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An assessment of cost-efficiency differences between feed-in-tariffs and tradable green certificates from a governmental perspective
Stockholm University, Faculty of Social Sciences, Department of Economics.
2015 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The increasing environmental threat because of unsustainable pollution levelshave forced E.U. to take further actions by enforcing directives in the electricity sector. The E.U. directives, enforced in 2002, aim to increase the level of electricity produced from renewable sources. In order to fulfill their received national target of green electricity, the E.U. members have, in most cases, either adopted a feed-in tariff or tradable green certificates. Since it is in a government’sinterest to minimize expenditure while still maximizing incentives when adopting a policy, this study has evaluated the cost-efficiency differences of a FIT and aTGC from a governmental perspective. This has been done by using two different models, one which measures total governmental expenditures in the energy sector and one which only measures the subsidies in the energy sector. The findings suggest that a TGC can be up to 159% more cost-efficient than a FIT, depending on how it is measured. The total expenditure model could establish the costefficiency differences with a significance of 5%, while the subsidy model could not establish the differences on a satisfying significance level

Place, publisher, year, edition, pages
2015. , 35 p.
Keyword [en]
Feed-in-tariffs, Tradable green certificates, environment, policy, subsidize, governmental expenditures
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-119789OAI: oai:DiVA.org:su-119789DiVA: diva2:848352
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Available from: 2015-09-17 Created: 2015-08-24 Last updated: 2015-09-21Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf