Agenda

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Agenda

• TGC system overview
• TGC pros cons
• TGC combined with subsidies
• Discussion, comments and conclusion

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TGC system overview

• Quantity type instrument set quota Q
• Penalty need to be set

Two separate markets
Pros cons.choice depend on the question to be
answered
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Penalty has to be set carefully
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The more the merrier
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Why promote RES-E?

• Climate change mitigation
• Lowering the local environmental pollutions
• Increase employment level
• Security of supply
• Technology development

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• TGC Advantages
• A cost efficient policy instrument
• The quota target will be reached!
• Consistency
• Divide the producers weakening potential lobbing

• TGC Drawbacks
• Difficult for not mature technologies to enter
• Displace lower emitting natural gas on the
  MC-curve
• No incentive for further development of
  fossil-based technologies
• Doesnt give incentive to use less energy

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• MERCI
• Questions?

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