Year: 2024
Type: dissertation
Abstract: Climate change is a detrimental and worsening problem in today’s world. An effective way to tackle climate change is to decarbonise the energy sector by transitioning from brown energy to green energy. This thesis examines the en-ergy price and consumption effects of introducing green energy certificates alongside a government imposed green energy quota in competitive energy markets. Through theoretical modelling and empirical analysis, this thesis finds that implementing such a policy has both subsidy and tax-like effects on green and brown energy producers respectively. This is different to some of the other policy mechanisms in place today, such as the cap-and-trade system or carbon pricing, as not only is brown energy production being disincentivised, but green energy production is also further being incentivised. The price and consumption effects of this policy are ambiguous. However, modelling variations in the gov-ernment mandated quota is useful in determining an optimal policy decision which balances both climate objectives and economic efficiency.
Source: Aaltodoc (Aalto University)
Author: Nagal, Yash
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7000008186