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The Liberalized Dutch Green Electricity Market: Lessons from a Policy Experiment

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Abstract

In order to meet the Kyoto targets, in the Netherlands 9% of electricity consumption should be generated from renewable resources by 2010. In this paper, we discuss and comment on the green energy policy the Dutch government adopted in 2001 and 2002 in order to reach this goal, and the new subsidy system that will be in place as of 2003. On the one hand, the policies from the past were successful since they led to 10% of electricity consumption being green in 2001, with a further increase to 13% in 2002. On the other hand, the government argued that the policy was too costly and inefficient. We analyze whether the arguments the Dutch government used to get the new law accepted hold water and we show that mainly the Dutch supply companies benefited from the generous subsidies that the government provided.

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van Damme, E., Zwart, G. The Liberalized Dutch Green Electricity Market: Lessons from a Policy Experiment. De Economist 151, 389–413 (2003). https://doi.org/10.1023/B:ECOT.0000006591.32432.4d

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  • DOI: https://doi.org/10.1023/B:ECOT.0000006591.32432.4d

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