IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v38y2010i8p4186-4195.html
   My bibliography  Save this article

Is blending of energy and climate policy instruments always desirable?

Author

Listed:
  • V., Oikonomou
  • A., Flamos
  • S., Grafakos

Abstract

In this paper we present an application of the Energy and Climate Policy Interactions (ECPI) decision support tool for the qualitative ex-ante assessment of ten (10) combinations of energy and climate policy instruments addressing energy end users. This tool consists of four (4) methodological steps, where policymakers set preferences that determine the outcome of policy instruments interactions. Initially, interacting policy instruments are broken down in into their design characteristics, referring to parameters that describe functions of each instrument. Policymakers can express in a merit order the significance they attribute to these characteristics when designing a policy instrument. Evaluation criteria for assessing these instruments individually are used and policymakers can assign weights on them expressing their preferences. An overall assessment of combined policy instruments based on these steps have illustrated policy interactions added value per criterion and overall. The user of the tool takes useful insights as regards the most preferable combinations of policy instruments, the less preferable ones and those who are conflicting.

Suggested Citation

  • V., Oikonomou & A., Flamos & S., Grafakos, 2010. "Is blending of energy and climate policy instruments always desirable?," Energy Policy, Elsevier, vol. 38(8), pages 4186-4195, August.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:4186-4195
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(10)00209-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. de Bovenberg, A Lans & Mooij, Ruud A, 1994. "Environmental Levies and Distortionary Taxation," American Economic Review, American Economic Association, vol. 84(4), pages 1085-1089, September.
    2. Charles E. Lindblom, 1958. "Tinbergen on Policy-Making," Journal of Political Economy, University of Chicago Press, vol. 66(6), pages 531-531.
    3. Agnolucci, Paolo, 2007. "The effect of financial constraints, technological progress and long-term contracts on tradable green certificates," Energy Policy, Elsevier, vol. 35(6), pages 3347-3359, June.
    4. Konidari, Popi & Mavrakis, Dimitrios, 2007. "A multi-criteria evaluation method for climate change mitigation policy instruments," Energy Policy, Elsevier, vol. 35(12), pages 6235-6257, December.
    5. Carolyn Fischer, 2003. "Combining rate-based and cap-and-trade emissions policies," Climate Policy, Taylor & Francis Journals, vol. 3(sup2), pages 89-103, December.
    6. Bjorner, Thomas Bue & Jensen, Henrik Holm, 2002. "Energy taxes, voluntary agreements and investment subsidies--a micro-panel analysis of the effect on Danish industrial companies' energy demand," Resource and Energy Economics, Elsevier, vol. 24(3), pages 229-249, June.
    7. Peter Hoeller & Jonathan Coppel, 1992. "Energy Taxation and Price Distortions in Fossil Fuel Markets: Some Implications for Climate Change Policy," OECD Economics Department Working Papers 110, OECD Publishing.
    8. Georg Meran & Nadine Wittmann, 2012. "Green, Brown, and Now White Certificates: Are Three One Too Many? A Micro-Model of Market Interaction," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 507-532, December.
    9. Jensen, S. G. & Skytte, K., 2002. "Interactions between the power and green certificate markets," Energy Policy, Elsevier, vol. 30(5), pages 425-435, April.
    10. Morthorst, P. E., 2001. "Interactions of a tradable green certificate market with a tradable permits market," Energy Policy, Elsevier, vol. 29(5), pages 345-353, April.
    11. Torstein Bye & Annegrete Bruvoll, 2008. "Multiple instruments to change energy behaviour: The emperor's new clothes?," Discussion Papers 549, Statistics Norway, Research Department.
    12. Birkelund, Hugo & Gjelsvik, Eystein & Aaserud, Morten, 1994. "The EU carbon/energy tax Effects in a distorted energy market," Energy Policy, Elsevier, vol. 22(8), pages 657-665, August.
    13. Boonekamp, Piet G.M., 2006. "Actual interaction effects between policy measures for energy efficiency—A qualitative matrix method and quantitative simulation results for households," Energy, Elsevier, vol. 31(14), pages 2848-2873.
    14. V. Oikonomou & C. Jepma, 2008. "A framework on interactions of climate and energy policy instruments," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 13(2), pages 131-156, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. del Río, Pablo, 2012. "The dynamic efficiency of feed-in tariffs: The impact of different design elements," Energy Policy, Elsevier, vol. 41(C), pages 139-151.
    2. Oikonomou, V. & Flamos, A. & Gargiulo, M. & Giannakidis, G. & Kanudia, A. & Spijker, E. & Grafakos, S., 2011. "Linking least-cost energy system costs models with MCA: An assessment of the EU renewable energy targets and supporting policies," Energy Policy, Elsevier, vol. 39(5), pages 2786-2799, May.
    3. Michael Howlett & Pablo del Rio, 2015. "The parameters of policy portfolios: verticality and horizontality in design spaces and their consequences for policy mix formulation," Environment and Planning C, , vol. 33(5), pages 1233-1245, October.
    4. Cashore, Benjamin & Stone, Michael W., 2012. "Can legality verification rescue global forest governance?," Forest Policy and Economics, Elsevier, vol. 18(C), pages 13-22.
    5. Isabel Garcia-Herrero & Maria Margallo & Jara Laso & Raquel Onandía & Angel Irabien & Ruben Aldaco, 2017. "Measuring the Vulnerability of an Energy Intensive Sector to the EU ETS under a Life Cycle Approach: The Case of the Chlor-Alkali Industry," Sustainability, MDPI, vol. 9(5), pages 1-23, May.
    6. Subash Dhar & Charles Marpaung, 2015. "Technology priorities for transport in Asia: assessment of economy-wide CO 2 emissions reduction for Lebanon," Climatic Change, Springer, vol. 131(3), pages 451-464, August.
    7. Thema, Johannes & Suerkemper, Felix & Grave, Katharina & Amelung, Adrian, 2013. "The impact of electricity demand reduction policies on the EU-ETS: Modelling electricity and carbon prices and the effect on industrial competitiveness," Energy Policy, Elsevier, vol. 60(C), pages 656-666.
    8. Spyridaki, N.-A. & Flamos, A., 2014. "A paper trail of evaluation approaches to energy and climate policy interactions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1090-1107.
    9. Selianko, Iulii and Andrea Lenschow, 2015. "Energy policy coherence from an intra-institutional perspective: Energy security and environmental policy coordination within the European Commission," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 19, January.
    10. Bertoldi, Paolo & Rezessy, Silvia & Anable, Jillian & Jochem, Patrick & Oikonomou, Vlasis, 2011. "Energy Saving Obligations and White Certificates: Ideas and Considerations for the Transport Sector," MPRA Paper 91624, University Library of Munich, Germany.
    11. Spyridaki, Niki-Artemis & Banaka, Stefania & Flamos, Alexandros, 2016. "Evaluating public policy instruments in the Greek building sector," Energy Policy, Elsevier, vol. 88(C), pages 528-543.
    12. Zeng, Yingying, 2017. "Indirect double regulation and the carbon ETSs linking: The case of coal-fired generation in the EU and China," Energy Policy, Elsevier, vol. 111(C), pages 268-280.
    13. Benjamin Cashore & Michael W. Stone, 2014. "Does California need Delaware? Explaining Indonesian, Chinese, and United States support for legality compliance of internationally traded products," Regulation & Governance, John Wiley & Sons, vol. 8(1), pages 49-73, March.
    14. Liu, Yang & Zhang, Yuchen & Zhao, Xiaoli & Farnoosh, Arash & Ma, Ruoran, 2024. "Synergistic effect of environmental governance instruments embedded in social contexts: A case study of China," Ecological Economics, Elsevier, vol. 220(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. del Río, Pablo, 2010. "Analysing the interactions between renewable energy promotion and energy efficiency support schemes: The impact of different instruments and design elements," Energy Policy, Elsevier, vol. 38(9), pages 4978-4989, September.
    2. Oikonomou, Vlasis & Jepma, Catrinus & Becchis, Franco & Russolillo, Daniele, 2008. "White Certificates for energy efficiency improvement with energy taxes: A theoretical economic model," Energy Economics, Elsevier, vol. 30(6), pages 3044-3062, November.
    3. Unger, Thomas & Ahlgren, Erik O., 2005. "Impacts of a common green certificate market on electricity and CO2-emission markets in the Nordic countries," Energy Policy, Elsevier, vol. 33(16), pages 2152-2163, November.
    4. Reinhard Madlener & Weiyu Gao & Ilja Neustadt & Peter Zweifel, 2008. "Promoting renewable electricity generation in imperfect markets: price vs. quantity policies," SOI - Working Papers 0809, Socioeconomic Institute - University of Zurich.
    5. Fischer, Carolyn & Fox, Alan, 2004. "Output-Based Allocations of Emissions Permits: Efficiency and Distributional Effects in a General Equilibrium Setting with Taxes and Trade," RFF Working Paper Series dp-04-37, Resources for the Future.
    6. Christoph Heinzel & Thomas Winkler, 2011. "Economic functioning and politically pragmatic justification of tradable green certificates in Poland," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 13(2), pages 157-175, June.
    7. Louis-Gaetan Giraudet and Dominique Finon, 2015. "European experiences with white certifirecate obligations: A critical review of existing evaluations," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    8. Nagl, Stephan, 2013. "Prices vs. Quantities: Incentives for Renewable Power Generation - Numerical Analysis for the European Power Market," EWI Working Papers 2013-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    9. Van den Bergh, Kenneth & Delarue, Erik & D'haeseleer, William, 2013. "Impact of renewables deployment on the CO2 price and the CO2 emissions in the European electricity sector," Energy Policy, Elsevier, vol. 63(C), pages 1021-1031.
    10. Spyridaki, N.-A. & Flamos, A., 2014. "A paper trail of evaluation approaches to energy and climate policy interactions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1090-1107.
    11. Holttinen, Hannele & Tuhkanen, Sami, 2004. "The effect of wind power on CO2 abatement in the Nordic Countries," Energy Policy, Elsevier, vol. 32(14), pages 1639-1652, September.
    12. Unteutsch, Michaela, 2014. "Redistribution Effects Resulting from Cross-Border Cooperation in Support for Renewable Energy," EWI Working Papers 2014-1, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    13. Hindsberger, Magnus & Nybroe, Malene Hein & Ravn, Hans F. & Schmidt, Rune, 2003. "Co-existence of electricity, TEP, and TGC markets in the Baltic Sea Region," Energy Policy, Elsevier, vol. 31(1), pages 85-96, January.
    14. Bor, Yunchang Jeffrey & Huang, Yophy, 2010. "Energy taxation and the double dividend effect in Taiwan's energy conservation policy--an empirical study using a computable general equilibrium model," Energy Policy, Elsevier, vol. 38(5), pages 2086-2100, May.
    15. Ying, Zhou & Xin-gang, Zhao & Xue-feng, Jia & Zhen, Wang, 2021. "Can the Renewable Portfolio Standards improve social welfare in China's electricity market？," Energy Policy, Elsevier, vol. 152(C).
    16. Clò, Stefano & Battles, Susan & Zoppoli, Pietro, 2013. "Policy options to improve the effectiveness of the EU emissions trading system: A multi-criteria analysis," Energy Policy, Elsevier, vol. 57(C), pages 477-490.
    17. Shrestha, Anil & Kakinaka, Makoto, 2023. "Nexus between renewable energy certificates and electricity prices in India: Evidence from wavelet coherence analysis," Renewable Energy, Elsevier, vol. 204(C), pages 836-847.
    18. Oikonomou, V. & Flamos, A. & Gargiulo, M. & Giannakidis, G. & Kanudia, A. & Spijker, E. & Grafakos, S., 2011. "Linking least-cost energy system costs models with MCA: An assessment of the EU renewable energy targets and supporting policies," Energy Policy, Elsevier, vol. 39(5), pages 2786-2799, May.
    19. Sorrell, Steve & Harrison, David & Radov, Daniel & Klevnas, Per & Foss, Andrew, 2009. "White certificate schemes: Economic analysis and interactions with the EU ETS," Energy Policy, Elsevier, vol. 37(1), pages 29-42, January.
    20. Louis-Gaëtan Giraudet & D. Finon, 2014. "European experiences with white certificate obligations: A critical review of existing evaluations," Working Papers hal-01016110, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:4186-4195. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.