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The Impact of Efficient Carbon and Gas Pricing on the Russian Electricity Market

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  • Nadia Chernenko

Abstract

The paper examines the possible interactions of various policy proposals to introduce carbon taxation, adjust the domestic price of gas to export parity and build a major electricity interconnector, and their impact on carbon emissions and the fuel mix of the Russian electricity supply industry. Without raising gas prices, a carbon tax of €25/tonne CO2 reduces emissions by 13% and the output of coal-fired plant by nearly 50%, with the major impact at €6.3-12.5/tonne. Moving gas prices to export parity substantially offsets this effect, and requires higher carbon taxes to reduce emissions by the same amount, as does building the prospective interconnector "Ural-Siberia".

Suggested Citation

  • Nadia Chernenko, 2013. "The Impact of Efficient Carbon and Gas Pricing on the Russian Electricity Market," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    • Handle: RePEc:aen:eeepjl:2_1_a05
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    References listed on IDEAS

    as
    1. Xu Yi-Chong, 2004. "Electricity Reform in China, India and Russia," Books, Edward Elgar Publishing, number 3200.
    2. David M. Newbery, 2008. "Climate Change Policy and Its Effect on Market Power in the Gas Market," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 727-751, June.
    3. Fedor Veselov & Alla Makarova & Andrei Khorshev, 2010. "Impact of restriction measures for greenhouse gas emission on development of electric power industry in Russia," International Journal of Low-Carbon Technologies, Oxford University Press, vol. 5(4), pages 303-310, July.
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    Cited by:

    1. Bratanova, Alexandra & Robinson, Jacqueline & Wagner, Liam, 2016. "New technology adoption for Russian energy generation: What does it cost? A case study for Moscow," Applied Energy, Elsevier, vol. 162(C), pages 924-939.

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