The paper studies the interaction between emerging markets for tradable green certificates (TGCs) and CO2-emissions in the electricity sector linked by renewable generated electricity (RES-E). We distinguish open and closed co-existence compared to isolated markets. Open co-existence means RES-E-generators are able to reimburse production cost for the commodity of green electricity on the conventional electricity market in contrary to closed co-existence where RES-E-producers get a fixed feed-in tariff for their commodity reflecting only avoided fuel costs. We found that for TGC buyers open is cheaper than closed co-existence. Accordingly, the financial volume of the TGC-market is smaller in the open case. Compared to a situation without green electricity promo-tion co-existence (open and closed) generates a higher supply - and thus, lower prices - of CO2-certificates due to co-production of "greeness" and CO2-reduction by RES-E generators. With re-spect to timing we advice policymakers to start with a TGC-system in order to gain more accep-tance from stakeholders.


Bräuer, Wolfgang
Stronzik, Marcus
Michaelowa, Axel


Grüne Zertifikate, CO2-Zertifikate, umweltpolitische Instrumente, erneuerbare Energien