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Alternative Environmental Regulation Schemes for the Belgian Power Generation Sector

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Author Info

  • A. Bigano
  • S. Proost
  • J. Van Rompuy

Abstract

This paper discusses the effects of alternative waysof using external cost estimates to regulateinvestments and generation in the electricityproduction sector. Starting from the existing system,four alternatives are considered: emission taxes forthe utility and for independent producers, emissiontaxes limited to the electric utility, emissionpermits limited to the electric utility and finally asystem where only investments are regulated, anddispatch is not. Taking external damage estimates fromthe literature, these alternatives are compared usinga dynamic partial equilibrium model of the Belgianelectricity market for the period 1995–2034. Theefficiency and distribution effects of the alternativeenvironmental policy instruments are quantified. Copyright Kluwer Academic Publishers 2000

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File URL: http://hdl.handle.net/10.1023/A:1008340402750
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 16 (2000)
Issue (Month): 2 (June)
Pages: 121-160

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Handle: RePEc:kap:enreec:v:16:y:2000:i:2:p:121-160

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: electric utilities; environmental policy; power generation;

References

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  1. Karen Palmer & Alan Krupnick & Hadi Dowlatabadi & Stuart Siegel, 1995. "Social Costing of Electricity in Maryland: Effects on Pollution, Investment, and Prices," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 1-26.
  2. M.F. Morss & J.L. Small, 1989. "Deriving Electricity Demand Elasticities from a Simulation Model," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 51-76.
  3. Ulph, A., 1994. "Environmental policy and international trade: a survey of recent economic analysis," Discussion Paper Series In Economics And Econometrics 9423, Economics Division, School of Social Sciences, University of Southampton.
  4. Chi-Keung Woo & Benjamin Hobbs & Ren Orans & Roger Pupp & Brian Horii, 1994. "Emission Costs, Consumer Bypass and Efficient Pricing of Electricity," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 43-54.
  5. Green, Richard J & Newbery, David M, 1992. "Competition in the British Electricity Spot Market," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 929-53, October.
  6. E. Raphael Branch, 1993. "Short Run Income Elasticity of Demand for Residential Electricity Using Consumer Expenditure Survey Data," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 111-122.
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Citations

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Cited by:
  1. Soderholm, Patrik & Sundqvist, Thomas, 2003. "Pricing environmental externalities in the power sector: ethical limits and implications for social choice," Ecological Economics, Elsevier, vol. 46(3), pages 333-350, October.
  2. Kudelko, Mariusz, 2006. "Internalisation of external costs in the Polish power generation sector: A partial equilibrium model," Energy Policy, Elsevier, vol. 34(18), pages 3409-3422, December.

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