Taxation within electricity auctions with dominant firm
AbstractThis paper gives an additional contribution to the literature on environmental policy under imperfect competition. It aims at exploring how imperfect competition can affect the performance of environmental policy. The focus is on pollution taxes and power generation which is a particularly interesting case for three reasons. First it is one of the most important environmentally regulated markets. Second the demand for electricity varies cyclically over time (for example on hourly basis). Third the pricing mechanism is a multi-period and multi-unit first price auctions. The main finding of the analysis is that, looking at the entire demand cycle, it is very unlikely (virtually impossible) that under imperfect competition taxation could increase emissions although, according to a part of the current literature, in principle pollution may increase in the short-run within specific cycle periods. Moreover this may happen under specific and unlikely conditions although, unlike what this literature suggests, large asymmetry of firms and extreme curvature of demand are not strictly necessary.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by FrancoAngeli Editore in its journal ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT.
Volume (Year): html10.3280/efe2012-001007 (2012)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.francoangeli.it/riviste/sommario.asp?IDRivista=10
Find related papers by JEL classification:
- Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angelo Ventriglia).
If references are entirely missing, you can add them using this form.