Promoting renewable electricity generation in imperfect markets: Price vs. quantity policies

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 0809

Classification and Topics

• Classification: Wirtschaft ; Alternative Energy Sources ; Energy: Government Policy
• Subject: Green certifcates ; Renewable portfolio standard ; Feed-in tarif ; Förderung erneuerbarer Energien ; Emissionshandel ; Strompreis ; Preisregulierung ; Unvollkommener Markt ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Madlener, Reinhard ; Gao, Weiyu ; Neustadt, Ilja ; Zweifel, Peter
• Event: Veröffentlichung
• (who): University of Zurich, Socioeconomic Institute
• (where): Zurich
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/76137
• Last update: 10.03.2025, 11:45 AM CET