![Using the market at a cost: How the introduction of green certificates in Sweden led to market inefficiencies [An article from: Utilities Policy]](https://www.ebooknetworking.net/books/B00/0PD/bigB000PDT77Y.jpg)
Using the market at a cost: How the introduction of green certificates in Sweden led to market inefficiencies [An article from: Utilities Policy]
Book Details
Author(s)
M. Nilsson, T. Sundqvist
Publisher
Elsevier
ISBN / ASIN
B000PDT77Y
ISBN-13
978B000PDT774
Availability
Available for download now
Marketplace
United States 🇺🇸
Description
This digital document is a journal article from Utilities Policy, published by Elsevier in 2007. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
The paper examines the transactions costs in the Swedish electricity retail market arising as a result of the implementation of a green certificate system. Since transaction costs cannot be measured directly, we analyze the margin between what the retailers pay for the certificates and what they charge the end-users for the certificate service. Our results highlight some costs of implementing new policy and the necessity of a careful regulatory design. We propose that the price transparency should be strengthened by, for example, shifting the quota obligation to the retailers and/or by including the pricing of the certificate-service in the end-user price of electricity. Furthermore, we restate the obvious fact that the number of policy instruments implemented in a particular market matters insofar that each and every policy will create transaction costs.
Description:
The paper examines the transactions costs in the Swedish electricity retail market arising as a result of the implementation of a green certificate system. Since transaction costs cannot be measured directly, we analyze the margin between what the retailers pay for the certificates and what they charge the end-users for the certificate service. Our results highlight some costs of implementing new policy and the necessity of a careful regulatory design. We propose that the price transparency should be strengthened by, for example, shifting the quota obligation to the retailers and/or by including the pricing of the certificate-service in the end-user price of electricity. Furthermore, we restate the obvious fact that the number of policy instruments implemented in a particular market matters insofar that each and every policy will create transaction costs.
