The debate about a green certificate market in Norway : arguments, issues and concerns

Abstract

Norway and Sweden have agreed on a joint green certificate market applicable from January 1st 2012. This has caused debate. Scientists, politicians, environmentalists and others have expressed their concerns and issues related to the market regulation, where arguments have been inconsistent and conflicting. This study aims to make it clearer what these presented arguments, issues and concerns are, what they are based on and whether they can be supported by economic theory. The study has analyzed six topics, and conclusions have been drawn for every topic. Producer and end-user prices will decrease. Security of supply will increase, which will have a positive effect on the net energy balance. Volatility in the certificate prices will be reduced with the opportunity of certificate banking. The certificate measure will have marginal impact on CO2- emissions. The measure will be cost-efficient and cause increased predictability of investment subsidies for RES seeking investors.