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The opening of the European electricity market and environmental policy: does the degree of competition matter?Keywords: Electricity, Trade and the Environment

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Author Info
Andrea Bigano () (Fondazione Eni-Enrico Mattei (Venice Italy))
Stef Proost () (K.U.Leuven, C.E.S., Energy, Transport and Environment)

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Abstract

This paper studies the relevance of strategic trade effects in the environmental policy for the European electricity sector. The production, investment and trade of electricity are modelled for four European countries. Three market regimes are distinguished: perfect competition, price regulation and Cournot competition. The model is used to examine the effect of the degree of competition on the state of the environment and to study the strategic trade effects of unilateral environmental policies.

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File URL: http://www.econ.kuleuven.ac.be/ew/academic/energmil/downloads/ete-wp-2003-15.pdf
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Publisher Info
Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment in its series Energy, Transport and Environment Working Papers Series with number ete0315.

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Length: 46 pages
Date of creation: Dec 2003
Date of revision:
Handle: RePEc:ete:etewps:ete0315

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Web page: http://www.econ.kuleuven.be/ew/academic/energmil
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Find related papers by JEL classification:
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
F18 - International Economics - - Trade - - - Trade and Environment
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection

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This page was last updated on 2009-12-5.

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