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Title: Tradable allowances in a restructuring electric industry

Abstract

The SO{sub 2} tradable allowance program has been introduced into an electric industry undergoing dramatic changes. Entry of nonutilities into the industry and the emergence of stranded costs are two major changes that are shown to have an impact on the market for allowances and the industry`s incentives to switch to cleaner fuels. The degree of impact depends on the extent to which consumers bypass traditional utilities and buy from entrants, and on public utility commission policies regarding the recovery of stranded costs. In turn, the amount of stranded costs depends on fuel switching. The results follow from simulations of a two-utility model that illustrate the qualitative effects of changing policies.

Authors:
 [1];  [2]
  1. Univ. of Wyoming, Laramie, WY (United States). Dept. of Economics and Finance
  2. Chang Gung Coll. of Medicine and Technology (Taiwan, Province of China)
Publication Date:
OSTI Identifier:
687375
Resource Type:
Journal Article
Journal Name:
Journal of Environmental Economics and Management
Additional Journal Information:
Journal Volume: 38; Journal Issue: 2; Other Information: PBD: Sep 1999
Country of Publication:
United States
Language:
English
Subject:
20 FOSSIL-FUELED POWER PLANTS; 29 ENERGY PLANNING AND POLICY; ELECTRIC UTILITIES; SULFUR DIOXIDE; ENVIRONMENTAL IMPACTS; LICENSES; MARKET; FINANCIAL INCENTIVES; COST; MATHEMATICAL MODELS; PUBLIC POLICY

Citation Formats

Tschirhart, J., and Wen, S.Y. Tradable allowances in a restructuring electric industry. United States: N. p., 1999. Web. doi:10.1006/jeem.1999.1087.
Tschirhart, J., & Wen, S.Y. Tradable allowances in a restructuring electric industry. United States. doi:10.1006/jeem.1999.1087.
Tschirhart, J., and Wen, S.Y. Wed . "Tradable allowances in a restructuring electric industry". United States. doi:10.1006/jeem.1999.1087.
@article{osti_687375,
title = {Tradable allowances in a restructuring electric industry},
author = {Tschirhart, J. and Wen, S.Y.},
abstractNote = {The SO{sub 2} tradable allowance program has been introduced into an electric industry undergoing dramatic changes. Entry of nonutilities into the industry and the emergence of stranded costs are two major changes that are shown to have an impact on the market for allowances and the industry`s incentives to switch to cleaner fuels. The degree of impact depends on the extent to which consumers bypass traditional utilities and buy from entrants, and on public utility commission policies regarding the recovery of stranded costs. In turn, the amount of stranded costs depends on fuel switching. The results follow from simulations of a two-utility model that illustrate the qualitative effects of changing policies.},
doi = {10.1006/jeem.1999.1087},
journal = {Journal of Environmental Economics and Management},
number = 2,
volume = 38,
place = {United States},
year = {1999},
month = {9}
}