Oleksandr Telizhenko

This paper elaborates on the theoretical and methodological fundamentals of a tradable green certificates system to foster renewable energy development in Ukraine. It proposes a management mechanism premised on the classical market model of tradable green certificates aiming at increasing the share of electricity from renewable energy sources in the country’s energy mix. Organizational stages of the mechanism formation at the national level and a methodological approach to assess green electricity generation cost are developed. The modeling has shown that the annual increase in the cap for green electricity consumption by 1% will raise the electricity tariff by 3%, which is not a significant financial burden for consumers. The proposed changes in the tradable green certificates system can be an effective management tool to achieve the required amount of electricity from renewable energy sources in the country’s total electricity consumption and to foster the development of the Ukrainian renewable energy sector.

Type of the article: Research Article

Abstract
The growing importance of renewable energy in ensuring energy security and sustainable development has increased attention to the role of public finance, particularly at the regional level. This study aims to assess whether different categories of regional public expenditure are associated with renewable energy development in Ukraine, distinguishing between installed capacity and electricity generation. The analysis is based on a balanced panel dataset for 25 Ukrainian regions over 2018–2021 and applies two-way fixed effects models with lagged specifications and Driscoll–Kraay standard errors. The results show that expenditures on electric transport exhibit the strongest positive association with installed renewable energy capacity (β ≈ 0.078, p < 0.001), followed by SME support (β ≈ 0.025, p < 0.001), other environmental activities (β ≈ 0.017, p < 0.001), and natural resource management (β ≈ 0.013, p < 0.001). In contrast, most general economic expenditures are not statistically significant, suggesting that these expenditure categories are not statistically associated with higher renewable energy development within the analyzed period. For renewable electricity production, contributions to the statutory capital of enterprises are positively associated (β ≈ 0.006, p < 0.05), while co-financing of investment projects is negatively associated (β ≈ −0.027, p < 0.001), reflecting implementation lags. Additionally, capital investments in environmental protection are negatively associated with renewable electricity production (β ≈ −0.072, p < 0.001), suggesting that installed capacity expansion differs from renewable electricity production.

Acknowledgment
The authors acknowledge funding from the Swiss National Science Foundation (SNSF) [Grant No. IZURZ1_224119]. The authors bear sole responsibility for the conclusions and results of the research.