The effect of guaranteed prices for green certificates on technology adoption : solar photovoltaic panels in Belgium

Sammanfattning: There is rising concern about the adverse implications of climate change on ecosystems and human livelihoods. This concern has led to a growing emphasis on enhancing the generation of renewable energy as a means to foster sustainability in societies. As part of this endeavor, governments around the world have tried to promote the adoption of renewable energy through different policy instruments. Countries, such as Belgium, have implemented a market for green tradable certificates. Additionally, regional authorities in the country have introduced guaranteed prices for certificates awarded to household solar energy systems. Through a two-way fixed effects model, this thesis investigates the relationship between uncertainty regarding future profits and the adoption of solar energy. Results suggest a positive relationship between the value of the minimum price and the adoption of solar energy systems in households. With a total cost of over €10 billion euros, this result suggests that around 20% of the total solar capacity installed in Belgium between 2008 and 2014 was related to the policy investments in the country.