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CERE - the Center for Environmental and Resource Economics CERE Working Papers, CERE - the Center for Environmental and Resource Economics

No 2016:19:
A general equilibrium cost-bene t rule for green certi ficates

Bengt Kriström ()

Abstract: I embed a electricity certificate system, mandating that a certain fraction of total electricity production must come from renewable sources, in a stylized competitive economy and derive a general equilibrium cost-benefit rule from perturbing the regulation. The welfare consequences (ignoring distributional effects) of the perturbation are compactly summarized in a simple formula.

Keywords: general equilibrium; cost-benefit; (follow links to similar papers)

JEL-Codes: D50; D61; (follow links to similar papers)

3 pages, December 9, 2016

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