Electricity market's policy instruments not a good combination
Tuesday, October 4, 2011 - 14:00
in Physics & Chemistry
While they may have similar environmental aims, the Swedish electricity market's two policy instruments -- tradable green certificates and carbon emissions allowances -- are not easy bedfellows. Although straightforward at first glance, the green certificate system turns out, on closer inspection, to be highly complicated and extremely obscure in terms of its effects, especially when combined with carbon emissions allowances. Such is the opinion of Anna Widerberg, economics researcher at the University of Gothenburg, in her recently presented thesis on how the two policy instruments together affect the Swedish electricity market.