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The Opening of the European Electricity Market and Environmental Policy: Does the Degree of Competition Matter?

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Author Info
Andrea Bigano (Fondazione Eni Enrico Mattei, the Abdus Salam Center for Theoretical Physics and the Center for Economic Studies, Katholieke Universiteit Leuven)
Stef Proost (Center for Economic Studies, Katholieke Universiteit Leuven)

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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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Publisher Info
Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2004.40.

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Date of creation: Feb 2004
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Handle: RePEc:fem:femwpa:2004.40

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Related research
Keywords: Electricity; Trade and the Environment;

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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Cited by:
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  1. Thure Traber & Claudia Kemfert, 2007. "Impacts of the German Support for Renewable Energy on Electricity Prices, Emissions and Profits: An Analysis Based on a European Electricity Market Model," Discussion Papers of DIW Berlin 712, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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