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The Liberalized Dutch Green Electricity Market : Lessons from a Policy Experiment

Author

Listed:
  • van Damme, E.E.C.

    (Tilburg University, Center For Economic Research)

  • Zwart, Gijsbert

    (Tilburg University, Center For Economic Research)

Abstract

In order to meet the Kyoto targets, in the Netherlands in 2010 9% of electricity consumption should be generated from renewable resources.In this paper, we discuss and comment on the green energy policy that the Dutch government has adopted in 2001 and 2002 in order to reach this goal, and the new subsidy system that will be in place as of 2003.On the one hand, the policies from the past were successful since they led to 10% of electricity consumption being green in 2001, with a further increase to 13% in 2002.On the other hand, the government argued that the policy was too costly and inefficient.We analyze whether the arguments that the Dutch government used to get the new law accepted hold water and we show that mainly the Dutch supply companies benefited from the generous subsidies that the government provided.
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Suggested Citation

  • van Damme, E.E.C. & Zwart, Gijsbert, 2003. "The Liberalized Dutch Green Electricity Market : Lessons from a Policy Experiment," Discussion Paper 2003-72, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:2404493f-80dd-4890-9356-31db072e2328
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    Cited by:

    1. van Damme, E.E.C., 2004. "Pragmatic Privatization : The Netherlands 1982-2002," Discussion Paper 2004-007, Tilburg University, Tilburg Law and Economic Center.
    2. Machiel Mulder & Victoria Shestalova & Mark Lijesen, 2005. "Vertical separation of the energy-distribution industry; an assessment of several options for unbundling," CPB Document 84.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Machiel Mulder & Victoria Shestalova & Mark Lijesen, 2005. "Vertical separation of the energy-distribution industry; an assessment of several options for unbundling," CPB Document 84, CPB Netherlands Bureau for Economic Policy Analysis.
    4. van Damme, E.E.C., 2004. "Pragmatic Privatization : The Netherlands 1982-2002," Discussion Paper 2004-007, Tilburg University, Tilburg Law and Economic Center.

    More about this item

    Keywords

    energy policy; green energy;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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