| ID | 122715 |
| Title Proper | Reexamination of renewable electricity policy in Sweden |
| Language | ENG |
| Author | Fridolfsson, Sven-Olof ; Tangeras, Thomas P |
| Publication | 2013. |
| Summary / Abstract (Note) | 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 problem. |
| `In' analytical Note | Energy Policy Vol. 58; Jul 2013: p.57-63 |
| Journal Source | Energy Policy Vol. 58; Jul 2013: p.57-63 |
| Key Words | Crowding Out ; Green Certificates ; NIMBY |