The Swedish system for subsidizing renewable energy is a public financial loss. Consumers carry the financial burden through their electric bill and its certificate fee.
CERE Professors Bengt Kriström and Per-Olov Johansson let us in Dagens industri, August 26th 2019 know more about their cost-benefit analysis of the green certificate for renewable energy: “Our analysis show that the system for green certificates for renewable energy introduced in Sweden is not profitable for the public finance. Also, it is the consumers who pay the prize through increased electric bills via the green certificate fee.” (click on headline to read more)
The subsidizes would lead to technological development, but there is no to weak support for that according to the analysis. Neither is it true when it comes to job openings and more secure supply of electricity. The professors also question the positive influence on the climate since the emissions in Europe is governed by the emission trading system. Irrespective of what Sweden do, emissions in Europe have a cap. Should Sweden choose not to buy emission rights, the emission will still be bought and take place somewhere else in Europe. Without the green certificates, the public finances would have about 9 billion SEK more, which, according to Kriström could have meant that “Sweden would have had bigger resources to limit emissions or any other pressing social duties”.
The analysis has been published in Energy Economics: Johansson, P-O. & Kriström, B. 2019. Welfare evaluation of subsidies to renewable energy in general equilibrium: Theory and application. Energy Economics 83, 144-155
The article in Dagens industri is based on a Timbro report: ”Elcertifikat: En gratislunch för kapitalägare?” (Green certificates: A free lunch for capitalists? (only in Swedish) published online August 27th, 2019.
Read the article in Dagens industri “Forskare sågar systemet – kunderna blir blåsta på 100 miljarder” (Researchers critize the system – consumers loose 100 billion SEK) published online August 26th, 2019 (only in Swedish).
More articles: fPlus “Forskare sågar elstödet – kunderna blir blåsta på 100 miljarder” Researchers critize the green certificate system – consumers loose 100 billion SEK) published online August 27th, 2019 (only in Swedish).
Dagens opinion: ”Timbro-rapport dömer ut el-certifikaten” (Report from Timbro condemn green certificates) publicerad online August 27th 2019 (only in Swedish).