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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, wc turn to the empirical evidence which suggests that a reasonable number of sources of C02 emissions in the power sector exists for bollers larger than 25MW. Overall, together with the contestable single market for electricity, the risk of significant strategis 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. (au)
Publication Date:
Jul 01, 2002
Product Type:
Technical Report
Report Number:
NEI-DK-4050
Resource Relation:
Other Information: Working Paper, 02-11; PBD: 2002
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; CARBON DIOXIDE; ENERGY POLICY; GREENHOUSE GASES; TRADE; KYOTO PROTOCOL; EUROPEAN UNION; ENVIRONMENTAL POLICY
OSTI ID:
20316717
Research Organizations:
Handelshoejskolen i Aarhus (Denmark) National oekonomisk Inst.
Country of Origin:
Denmark
Language:
English
Other Identifying Numbers:
Other: ISSN 1397-4831; TRN: DK0301019
Availability:
Available to ETDE participating countries only(see www.etde.org); commercial reproduction prohibited; OSTI as DE20316717
Submitting Site:
DK
Size:
16 pages
Announcement Date:

Citation Formats

Tinggaard Svendsen, G, and Vesterdal, M. CO2 trade and market power in the EU electricity sector. Denmark: N. p., 2002. Web.
Tinggaard Svendsen, G, & Vesterdal, M. CO2 trade and market power in the EU electricity sector. Denmark.
Tinggaard Svendsen, G, and Vesterdal, M. 2002. "CO2 trade and market power in the EU electricity sector." Denmark.
@misc{etde_20316717,
title = {CO2 trade and market power in the EU electricity sector}
author = {Tinggaard Svendsen, G, and Vesterdal, M}
abstractNote = {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, wc turn to the empirical evidence which suggests that a reasonable number of sources of C02 emissions in the power sector exists for bollers larger than 25MW. Overall, together with the contestable single market for electricity, the risk of significant strategis 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. (au)}
place = {Denmark}
year = {2002}
month = {Jul}
}