Renewable electricity in a liberalised market -- the concept of green certificates

Liberalization of energy markets in Europe has altered many aspects of energy policy. In order to realize environmental targets in a liberalizing market, the design and implementation of policy measures andincentive schemes have to be in accordance with free market principles. Current incentive schemes, most of which have been established inthe pre-liberalization situation, might not be able to fulfill this requirement (European Commission, 1999). This emphasizes the need fornew policy measures that are more in coherence with the new market. Such measures are discussed, thereby focusing on the green certificate system. [ABSTRACT FROM AUTHOR]