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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

Author

Listed:
  • Andrea Bigano

    (Fondazione Eni-Enrico Mattei (Venice Italy))

  • Stef Proost

    (K.U.Leuven, C.E.S., Energy, Transport and Environment)

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.

Suggested Citation

  • Andrea Bigano & Stef Proost, 2003. "The opening of the European electricity market and environmental policy: does the degree of competition matter?Keywords: Electricity, Trade and the Environment," Energy, Transport and Environment Working Papers Series ete0315, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
    • Handle: RePEc:ete:etewps:ete0315
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    More about this item

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • F18 - International Economics - - Trade - - - Trade and Environment
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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