White certificate schemes: Economic analysis and interactions with the EU ETS |
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| Authors: | Steve Sorrell David Harrison Daniel Radov Per Klevnas Andrew Foss |
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| Affiliation: | 1. Sussex Energy Group, SPRU (Science & Technology Policy Research), Freeman Centre, University of Sussex, Falmer, Brighton BN1 9QE, UK;2. NERA Economic Consulting, 15 Stratford Place, London W1C 1BE, UK |
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| Abstract: | This paper examines the economic, environmental and distributional impacts of an idealised tradable white certificate (TWC) scheme and shows how the impacts are modified when the scheme operates in parallel with the EU emissions trading scheme (EU ETS). It uses simple graphical techniques to assess whether a TWC scheme will increase, decrease or have an ambiguous effect on electricity demand, wholesale and retail electricity prices, carbon emissions and investment in energy efficiency, paying particular attention to the interpretation of ‘additionality’. |
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| Keywords: | White certificate schemes Emissions trading Policy interaction |
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