A critical microeconomic analysis of modelling the interaction of WCTS and EU ETS

This paper presents an alternative approach to a graphical analysis of the interaction of White Certificates with the EU emission trading scheme as the approach of Sorrell et al. (2009a contains the following aspects that require some clarification: first, the issue of a clearer distinction between conventional and alternative energy supply is brought up. Second, the concept of a minimum requirement for energy demanded is discussed. Third, the correlation between demand for energy and demand for energy efficiency measures is displayed in a more intuitive manner. The effects of introducing WCTS and EU ETS into the market setting are then analyzed accordingly.