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CO2 trade and market power in the EU electricity sector

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CO2 trade and market power in the EU electricity sector. / Svendsen, Gert Tinggaard; Vesterdal, Morten.

2002.

Research output: Working paperResearch

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@techreport{bafc63c0be4311daad69000ea68e967b,
title = "CO2 trade and market power in the EU electricity sector",
abstract = "The EU commission is planning to launch an emission trading market for greenhouse gases within near future. This to meet its obligations under the United Nations Framework Convention on Climate Change and the Kyoto Protocol. After a theoretical discussion on market power in such a market, we turn to the empirical evidence which suggests that a reasonable number of sources of CO2 emissions in the power sector exists for boilers larger than 25MW. Overall, together with the contestable single market for electricity, the risk of significant strategic behaviour seems negligible. Thus, the electric utility sector seems a suitable testing ground for an EU-scheme of emissions trading. In the longer run, it will be important to broaden the scope of the trading scheme as the inclusion of other sectors will further limit the risk of market power.",
keywords = "European Union, energy economics, greenhouse gases, CO2, permit market, market power, Kyoto protocol, electricity sector, energy policy, European Union, energy economics, greenhouse gases, CO2, permit market, market power, Kyoto protocol, electricity sector, energy policy",
author = "Svendsen, {Gert Tinggaard} and Morten Vesterdal",
year = "2002",
language = "English",
type = "WorkingPaper",

}

RIS

TY - UNPB

T1 - CO2 trade and market power in the EU electricity sector

AU - Svendsen, Gert Tinggaard

AU - Vesterdal, Morten

PY - 2002

Y1 - 2002

N2 - The EU commission is planning to launch an emission trading market for greenhouse gases within near future. This to meet its obligations under the United Nations Framework Convention on Climate Change and the Kyoto Protocol. After a theoretical discussion on market power in such a market, we turn to the empirical evidence which suggests that a reasonable number of sources of CO2 emissions in the power sector exists for boilers larger than 25MW. Overall, together with the contestable single market for electricity, the risk of significant strategic behaviour seems negligible. Thus, the electric utility sector seems a suitable testing ground for an EU-scheme of emissions trading. In the longer run, it will be important to broaden the scope of the trading scheme as the inclusion of other sectors will further limit the risk of market power.

AB - The EU commission is planning to launch an emission trading market for greenhouse gases within near future. This to meet its obligations under the United Nations Framework Convention on Climate Change and the Kyoto Protocol. After a theoretical discussion on market power in such a market, we turn to the empirical evidence which suggests that a reasonable number of sources of CO2 emissions in the power sector exists for boilers larger than 25MW. Overall, together with the contestable single market for electricity, the risk of significant strategic behaviour seems negligible. Thus, the electric utility sector seems a suitable testing ground for an EU-scheme of emissions trading. In the longer run, it will be important to broaden the scope of the trading scheme as the inclusion of other sectors will further limit the risk of market power.

KW - European Union

KW - energy economics

KW - greenhouse gases

KW - CO2

KW - permit market

KW - market power

KW - Kyoto protocol

KW - electricity sector

KW - energy policy

KW - European Union

KW - energy economics

KW - greenhouse gases

KW - CO2

KW - permit market

KW - market power

KW - Kyoto protocol

KW - electricity sector

KW - energy policy

M3 - Working paper

BT - CO2 trade and market power in the EU electricity sector

ER -