| 来源类型 | Research papers
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| 规范类型 | 报告
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| A Study on Coordinating Cap and Trade Mechanisms and Renewable Portfolio Standards |
| K. H. Jeong
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| 发表日期 | 2010-12-31
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| 出版年 | 2010
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| 语种 | 英语
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| 摘要 |
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The purpose of this study is to analyze the interactions of two regulations of RPS and ETS in the electricity market and present a policy-mix plan in order to accomplish the regulation goals of RPS and ETS in a cost-effective way.
UK is the one who operates both policies of Renewable Obligation and non-binding ETS together. Meanwhile, some states in the US adopt NOx Budget Trading Program to improve air quality. As a part of NOx program, renewable utilities are granted a certain quota of allocations under Set-aside Program. This is an example of policy mix of RPS and ETS, though it is for NOx.
The effect of both policies of RPS and ETS to the electricity market is as follows. Electricity demand with both RPS and ETS would be reduced and retail price for electricity rise in a perfect competition market. RPS leads to an increasing demand for renewable power generation while demand for traditional fossil fuel generation is reduced. As a result, renewable power generation gains a positive market share as quota for renewables is allocated to power companies, which results in a positive surplus for renewable power producers. On the other hand, surplus for fossil fuel power generation decreases due to a reduced consumption and a decrease in wholesale electricity price.
Furthermore, the consumer welfare will be reduced as consumers have to pay for the cost increase on emission reduction technology as well as for Renewable Energy Certificates.
There are two ways of policy mix for RPS and ETS.
First, REC market and emission trade market are linked each other, and commodities such as REC and Emission Rights can be traded in both markets after conversion with a properly defined factor. Second, a quota of allocations is assigned to renewable power generation or allocations are granted to renewable generations based on output or load-based cap.
In case of Korea, RPS system has been introduced purely as an energy policy. As the RPS system is expected to be implemented only for energy policy, Set-aside to renewable generation or output-based allocation to renewables would be optimal choice for Korean government in the sense that it would reduce the burden of power generation under double regulations of energy and environment.
Language : Korean |
| URL | http://www.keei.re.kr/web_keei/en_publish.nsf/by_report_year/FA718CD977D435BE49257834000332AB?OpenDocument
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| 来源智库 | Korea Energy Economics Institute (Republic of Korea)
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| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/322562
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推荐引用方式
GB/T 7714 |
K. H. Jeong. A Study on Coordinating Cap and Trade Mechanisms and Renewable Portfolio Standards. 2010.
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