
Chapter 7
Development: Renewable
energy credits
Katherine Ryzhaya Poster
Environmental commodity trading is a market-based approach aimed at controlling
pollution at the lowest possible cost by providing economic incentives for achieving
emission reductions and penalizing non-compliance.
7.1 RENEWABLE ENERGY CREDITS
Renewable Energy Credits (REC) represents environmental and social benefits of
renewable energy generation. RECs serve as certificates of proof that one unit of
renewable energy has been generated. Most commonly, the units are measured in
MWh, where 1 REC = 1 megawatt hour (MWh) of renewable generation. RECs are
also the accounting tool ...