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This paper proposes a time simulation model for long-term wind capacity investment decisions in the presence of electricity market and tradable green certificate (TGC) market. Investment decisions and wind capacity development are fundamentally based on incentives gained from both these markets. In TGC market, the tradable certificates are issued to renewable generation companies for each megawatt-hour of electricity generation. Distribution companies are obligated to support fraction of their electricity consumptions from renewable sources. The dynamics of prices in both markets are simulated in a system dynamics model to trace the dynamics of wind capacity investment. Such a decision model enables both the wind generation investors and the regulators to gain perfect insight into finding possible consequences of different decisions that they should make under different policies and markets conditions particularly in the preliminary design of TGC market. The impacts of regulatory policies, trading strategies of players, and uncertainties in both markets are examined in a case study.