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2007
Report
Titel
Increased auctioning in the EU ETS and trade in guarantees of origin for renewables: A comparison of the impact on power sector producer rents
Abstract
The European Commission is currently reviewing two major policy instruments which will pose major economic challenges and opportunities for EU power pro-ducers. First, the European Emissions Trading Scheme (EU ETS) is likely to include a high percentage of auctioning. Second, support schemes for electricity from renewable energy sources may involve open private-actor trade of guaran-tees of origins (GO). This paper provides a first coarse comparison of the im-pacts of these policy changes on power sector producer rents. The results sug-gest that the losses in producer rents from increased auctioning in the EU ETS may be offset by additional producer rents from private-actor based GO trade for renewable electricity.
Author(s)
Organisation
Fraunhofer-Institut für System- und Innovationsforschung -ISI-, Karlsruhe
Verlag
Fraunhofer ISI
Verlagsort
Karlsruhe