Tradable allowances in a restructuring electric industry
- Univ. of Wyoming, Laramie, WY (United States). Dept. of Economics and Finance
- Chang Gung Coll. of Medicine and Technology (Taiwan, Province of China)
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.
- OSTI ID:
- 687375
- Journal Information:
- Journal of Environmental Economics and Management, Vol. 38, Issue 2; Other Information: PBD: Sep 1999
- Country of Publication:
- United States
- Language:
- English
Similar Records
Insight on oversight
To wheel or deal?: Electric industrial pricing in California