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Capacity mechanisms on Central European electricity markets: Effects on consumers, producers and technologies until 2033 / Thure Traber. Deutsches Institut für Wirtschaftsforschung, 2014, 34 p. (discussion paper ; 1385)http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1385&#38;r=eneAuthor's abstract :The reduced attractiveness of investments in reliable power plants under conditions of liberalized markets and the transition towards renewable energies has brought a discussion on  capacity policies to Europe. We use a partial equilibrium model to compare important effects of  three basic policies. A strategic reserve policy and a capacity market policy with administratively  set capacity targets, and the obligation of generators to hold certificates of reliable capacities  in relation to their supply. We find important differences of policies for consumers and producers  that are depending on existing power plant structure and the elasticity of demand particularly in  the medium term perspective until the year 2023. In the longer term until 2033 the results differ  less pronounced. However, for the German case we demonstrate  the potential to effectively reduce  the burden on the economy to achieve a prescribed target through the implementation of a capacity  certificate system.