Electricity Certificate Scheme as an Incentive for Renewable Energy Development in Norway

Abstract

This study empirically examines the efficacy of the Electricity Certificate Scheme to renewables energy development in Norway. We construct monthly electricity production panel data from various renewable-based sources for Norway and other European countries between 2004 and 2019. By employing the difference-in-difference method, we find the real positive effect of the Electricity Certificate Scheme on renewable-based electricity production on hydroelectricity in Norway, which has been further reinforced by deploying synthetic control methods in the European hydroelectricity production level. The real effect of the Electricity Certificate Scheme on wind-based electricity production in Norway is inconclusive. We therefore conclude that the Electricity Certificate Scheme has a positive impact on certain types of renewables development in Norway. Acknowledgements