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White certificate schemes : the static and dynamic efficiency of an adaptive policy instrument

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  • Louis-Gaëtan Giraudet

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Dominique Finon

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

White certificate schemes mandate energy companies to promote energy efficiency through flexibility mechanisms, including the trading of energy savings. They can be characterized as a quantity-based, baseline-and-credit system for the diffusion of energy efficient technologies. This paper offers a comprehensive comparison of experiences with white certificate schemes in Great Britain, Italy and France. Starting from the identification of the key drivers underlying each scheme, it proposes an original interpretation of this type of scheme as an adaptive instrument, in the sense that it can take different forms in response to specific institutional contexts. The analysis shows that schemes perform well in terms of static efficiency - they generate net social benefits over the period considered - though there are large discrepancies in cost-effectiveness due to various technical potentials across countries. They achieved mixed results regarding dynamic efficiency - the ability to induce and sustain technological change over the long run. Market transformation occurred in Great Britain, but was poorly incentivized in Italy and France due to inadequate compliance cost recovery rules. Substantial organisational change has occurred in every country, mainly by strengthening vertical relationships between obliged parties and upstream businesses. Overall, the obligation (rather than the market component) drives the early phases of the schemes.

Suggested Citation

  • Louis-Gaëtan Giraudet & Dominique Finon, 2011. "White certificate schemes : the static and dynamic efficiency of an adaptive policy instrument," Working Papers hal-00866422, HAL.
    • Handle: RePEc:hal:wpaper:hal-00866422
    Note: View the original document on HAL open archive server: https://hal.science/hal-00866422
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Palmer, Karen L. & Grausz, Samuel & Beasley, Blair & Brennan, Timothy J., 2013. "Putting a floor on energy savings: Comparing state energy efficiency resource standards," Utilities Policy, Elsevier, vol. 25(C), pages 43-57.
    2. Crampes, Claude & Léautier, Thomas-Olivier, 2020. "White certificates and competition," TSE Working Papers 20-1167, Toulouse School of Economics (TSE).
    3. Bertoldi, Paolo & Rezessy, Silvia & Oikonomou, Vlasis, 2013. "Rewarding energy savings rather than energy efficiency: Exploring the concept of a feed-in tariff for energy savings," Energy Policy, Elsevier, vol. 56(C), pages 526-535.
    4. 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).
    5. Clemens Rohde & Jan Rosenow & Nick Eyre & Louis-Gaëtan Giraudet, 2015. "Energy saving obligations—cutting the Gordian Knot of leverage?," Post-Print hal-01016112, HAL.
    6. repec:hal:ciredw:hal-01016112 is not listed on IDEAS

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