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Voluntary agreements with white certificates for energy efficiency improvement as a hybrid policy instrument

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  • Oikonomou, V.
  • Patel, M.K.
  • van der Gaast, W.
  • Rietbergen, M.

Abstract

In this paper we examine the implementation of a combined policy scheme that consists of a traditional instrument, the voluntary agreements (VAs), and an innovative one, the white certificates (WhC). The basic structure of this scheme is that energy suppliers who undertake an energy efficiency obligation under a white certificate scheme can make use of voluntary actions to enhance investments in innovative energy savings projects. Energy suppliers and other market parties can additionally or in parallel participate in voluntary agreements and set energy efficiency targets. For fulfilling their voluntary agreement target, these market parties can receive tax exemptions or receive white certificates that they can sell in the market. Transaction costs and baseline definition for demonstrating energy efficiency improvement deserve special attention. This policy can assist a country to enhance energy efficiency improvement while it stimulates innovation. Cost effectiveness can be higher than the case of stand-alone policy instruments, since more financing options are available for more expensive projects. Nevertheless, the added value of the scheme lies more in the implementation of innovative measures for enhanced energy efficiency. Furthermore, market parties can discover more business opportunities in energy efficiency and establish a green image; hence an integrated scheme should achieve higher political acceptability.

Suggested Citation

  • Oikonomou, V. & Patel, M.K. & van der Gaast, W. & Rietbergen, M., 2009. "Voluntary agreements with white certificates for energy efficiency improvement as a hybrid policy instrument," Energy Policy, Elsevier, vol. 37(5), pages 1970-1982, May.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:5:p:1970-1982
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    References listed on IDEAS

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    1. Oikonomou, Vlasis & Rietbergen, Martijn & Patel, Martin, 2007. "An ex-ante evaluation of a White Certificates scheme in The Netherlands: A case study for the household sector," Energy Policy, Elsevier, vol. 35(2), pages 1147-1163, February.
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    4. Mundaca, Luis, 2007. "Transaction costs of Tradable White Certificate schemes: The Energy Efficiency Commitment as case study," Energy Policy, Elsevier, vol. 35(8), pages 4340-4354, August.
    5. Mundaca, Luis, 2008. "Markets for energy efficiency: Exploring the implications of an EU-wide 'Tradable White Certificate' scheme," Energy Economics, Elsevier, vol. 30(6), pages 3016-3043, November.
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    7. V. Oikonomou & W. Gaast, 2008. "Integrating Joint Implementation Projects for Energy Efficiency on the Built Environment with White Certificates in The Netherlands," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 13(1), pages 61-85, January.
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