Policies for electricity production from renewable sources. The Italian case

The Italian Government introduced the Green Certificate market in order to stimulate the production of electricity form Renewable Energy Sources (RES). The suppliers are obliged to produce a share of renewable electricity otherwise they must buy a number of certificates corresponding to the quota. The paper aims to quantify the economic impact of a reform on Green Certificate market through the Hybrid Input-Output. More- over, through the singular value decomposition of the inverse matrix of the model, we identify the appropriate key structure able to obtain both the expected positive total output change and the increase of electricity production from RES.