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Coordination of carbon reduction and renewable energy support policies

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IIT-08-037A.pdf (167.9Kb)
Fecha
2008-06-15
Autor
Linares Llamas, Pedro
Santos Pérez, Francisco Javier
Ventosa Rodríguez, Mariano
Estado
info:eu-repo/semantics/publishedVersion
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Resumen
 
 
The European Union is currently pursuing ambitious objectives regarding carbon emissions reductions and renewable energy deployment (renewable energy support, RES), as part of a comprehensive energy policy effort. However, significant interactions may arise between the policy instruments used (Emissions Trading Scheme and RES-specific measures), such as double-counting incentives or geographical overlapping. This article examines these interactions using analytical and simulation research and offers some policy recommendations. The major conclusions are that both instruments are required in order to meet the objectives, and that their use in combination may be advantageous regarding consumer costs. However, they must be carefully coordinated, since part of the carbon allowance price may be incorporated into the RES certificate price. This will produce a reduction in the strength of the emissions reduction signal, and also a different distribution of the cost of the policies. In addition, each policy needs to focus at the geographical level appropriate for its objectives (carbon and security of supply policies at the regional level, and RES-induced local development at the national level).
 
URI
https:doi.org10.3763cpol.2007.0361
Coordination of carbon reduction and renewable energy support policies
Tipo de Actividad
Artículos en revistas
ISSN
1469-3062
Materias/ categorías / ODS
Instituto de Investigación Tecnológica (IIT)
Palabras Clave

Carbon emissions trading; electricity markets; governance; policy coordination; renewable energy; sustainable development policies and measures (SD-PAMs)
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