Working Paper Series
A Reexamination of Renewable Electricity Policy in Sweden
() and Thomas Tangerås
Abstract: Green certificates are the main instrument for promoting
renewable electricity (RES-E) in Sweden. But certificates cover only a
limited share of total RES-E production. Under partial coverage, crowding
out may arise whereby costly new RES-E replaces inexpensive old RES-E.
Granting certificates to all of RES-E production improves efficiency, but
leaves windfall rent to otherwise profitable facilities. We also analyze
transaction costs in the permit process for new RES-E in Sweden.
Municipalities veto socially desirable projects because of asymmetrically
distributed investment costs and benefits. We propose market-based permit
fees rather than limited veto rights as a solution to this NIMBY
Keywords: Crowding out; Green certificates; NIMBY; Transaction costs; Windfall rent; (follow links to similar papers)
JEL-Codes: D23; Q48; Q52; Q54; (follow links to similar papers)
19 pages, June 18, 2012
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom