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Short-term distributional consequences of climate change impacts on the power sector: who gains and who loses?

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  • Dirk Rübbelke
  • Stefan Vögele

Abstract

Climate change tends to negatively affect the power sector, inter alia, by causing cooling problems in power plants and impairing the water supply required for hydropower generation. In the future, when global warming is expected to increase, autonomous adaptation to climate change via international electricity markets inducing reallocations of power generation may not be sufficient to prevent supply disruptions anymore. Furthermore, the consequent changes of supply patterns and electricity prices might cause an undesirable redistribution of wealth both between individual power suppliers and between suppliers and consumers. This study ascertains changes in European power supply patterns and electricity prices caused by on-going global warming as well as the associated redistribution of wealth for different climate change scenarios. The focus of the analysis is on short-term effects. Our results confirm that autonomous adaptation in the power sector should be complemented by planned public adaptation in order to preserve energy security and to prevent undesired distributional effects. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Dirk Rübbelke & Stefan Vögele, 2013. "Short-term distributional consequences of climate change impacts on the power sector: who gains and who loses?," Climatic Change, Springer, vol. 116(2), pages 191-206, January.
    • Handle: RePEc:spr:climat:v:116:y:2013:i:2:p:191-206
    DOI: 10.1007/s10584-012-0498-1
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    Cited by:

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    5. Jennifer Cronin & Gabrial Anandarajah & Olivier Dessens, 2018. "Climate change impacts on the energy system: a review of trends and gaps," Climatic Change, Springer, vol. 151(2), pages 79-93, November.
    6. Silvio Pereira-Cardenal & Henrik Madsen & Karsten Arnbjerg-Nielsen & Niels Riegels & Roar Jensen & Birger Mo & Ivar Wangensteen & Peter Bauer-Gottwein, 2014. "Assessing climate change impacts on the Iberian power system using a coupled water-power model," Climatic Change, Springer, vol. 126(3), pages 351-364, October.
    7. Dirk Rübbelke & Stefan Vögele, 2013. "Time and tide wait for no man: pioneers and laggards in the deployment of CCS," Working Papers 2013-13, BC3.
    8. Steinhäuser, J. Micha & Eisenack, Klaus, 2020. "How market design shapes the spatial distribution of power plant curtailment costs," Energy Policy, Elsevier, vol. 144(C).
    9. Agrawal, Nikhil & Ahiduzzaman, Md & Kumar, Amit, 2018. "The development of an integrated model for the assessment of water and GHG footprints for the power generation sector," Applied Energy, Elsevier, vol. 216(C), pages 558-575.

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