IDEAS home Printed from https://ideas.repec.org/p/hhs/hastef/0105.html
   My bibliography  Save this paper

Power production and the price of electricity: An analysis of a phaseout of Swedish nuclear power

Author

Listed:
  • Andersson, Bo

    (Department of Economics)

  • Hadén, Erik

    (Department of Economics)

Abstract

In this paper the effects of a phaseout of Swedish nuclear power combined with different CO2 emission goals, are studied. The vital relationship between the national electricity market and the regional markets for heating is modeled in detail in a dynamic partial equilibrium environment. It is shown that phasing out nuclear power while restricting future CO2 emissions to the 1990 level implies a significant increase in electricity prices and a substantial loss in welfare.

Suggested Citation

  • Andersson, Bo & Hadén, Erik, 1996. "Power production and the price of electricity: An analysis of a phaseout of Swedish nuclear power," SSE/EFI Working Paper Series in Economics and Finance 105, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0105
    as

    Download full text from publisher

    File URL: http://swopec.hhs.se/hastef/papers/hastef0105.ps
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0105.ps.zip
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0105.pdf
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0105.pdf.zip
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bergman, Lars & Andersson, Bo, 1995. "Market Structure and the Price of Electricity: An ex ante Analysis of the deregulated Swedish Electricity Market," SSE/EFI Working Paper Series in Economics and Finance 47, Stockholm School of Economics.
    2. Bo Andersson & Lars Bergman, 1995. "Market Structure and the Price of Electricity: An Ex Ante Analysis of the Deregulated Swedish Electricity Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 97-110.
    3. Alan S. Manne, 1974. "Waiting for the Breeder," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 47-65.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bowei Guo & Giorgio Castagneto Gissey, 2019. "Cost Pass-through in the British Wholesale Electricity Market: Implications of Brexit and the ETS reform," Working Papers EPRG1937, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    2. Amundsen, Eirik S. & Nesse, Arvid & Tjotta, Sigve, 1999. "Deregulation of the Nordic power market and environmental policy," Energy Economics, Elsevier, vol. 21(5), pages 417-434, October.
    3. Wolf-Peter Schill & Claudia Kemfert, 2011. "Modeling Strategic Electricity Storage: The Case of Pumped Hydro Storage in Germany," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 59-88.
    4. Kenneth Gillingham, Hao Deng, Ryan Wiser, Naim Darghouth, Gregory Nemet, Galen Barbose, Varun Rai, and Changgui Dong, 2016. "Deconstructing Solar Photovoltaic Pricing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    5. Soledad Arellano, 2004. "Market Power in Mixed Hydro-Thermal Electric," Documentos de Trabajo 187, Centro de Economía Aplicada, Universidad de Chile.
    6. Ivan Hajdukovic, 2022. "The impact of international trade on the price of solar photovoltaic modules: empirical evidence," EconomiA, Emerald Group Publishing Limited, vol. 23(1), pages 88-104, July.
    7. Bremberger, Francisca & Gasser, Stephan M. & Kremser, Thomas R. & Rammerstorfer, Margarethe, 2014. "The Impact of EU ETS Price Variations on Germany’s Electricity Production Mix," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(3), pages 164-180.
    8. Johnsen, T. A., 2001. "Hydropower generation and storage, transmission contraints and market power1," Utilities Policy, Elsevier, vol. 10(2), pages 63-73, June.
    9. Arellano, Maria-Soledad & Serra, Pablo, 2007. "A model of market power in electricity industries subject to peak load pricing," Energy Policy, Elsevier, vol. 35(10), pages 5130-5135, October.
    10. M. Soledad Arellano & Pablo Serra, 2005. "Market Power in Price-Regulated Power Industries," Documentos de Trabajo 208, Centro de Economía Aplicada, Universidad de Chile.
    11. Marina Tsygankova, 2007. "When is Mighty Gazprom Good for Russia?," Discussion Papers 526, Statistics Norway, Research Department.
    12. Finn Roar Aune & Rolf Golombek & Sverre Kittelsen & Knut Einar Rosendahl, 2004. "Liberalizing the energy markets of Western Europe - a computable equilibrium model approach," Applied Economics, Taylor & Francis Journals, vol. 36(19), pages 2137-2149.
    13. Lee, Jeong-Dong & Lee, Jongsu & Kim, Tai-Yoo, 2004. "Ex-ante analysis of welfare change for a liberalization of the natural gas market," Energy Economics, Elsevier, vol. 26(3), pages 447-461, May.
    14. Wasantha Athukorala & Clevo Wilson, 2010. "Demand for electricity: evidence of cointegration and causality from Sri Lanka," School of Economics and Finance Discussion Papers and Working Papers Series 258, School of Economics and Finance, Queensland University of Technology.
    15. Sorgard, Lars, 1997. "Domestic merger policy in an international oligopoly: The Nordic market for electricity," Energy Economics, Elsevier, vol. 19(2), pages 239-253, May.
    16. Paizs, László & Mészáros, Mátyás Tamás, 2003. "Piachatalmi problémák modellezése a dereguláció utáni magyar áramtermelő piacon [Modelling problems of market power on the Hungarian electricity-generation market after deregulation]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 735-764.
    17. Tsai, Miao-Shan & Chang, Ssu-Li, 2015. "Taiwan’s 2050 low carbon development roadmap: An evaluation with the MARKAL model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 178-191.
    18. Sandsmark, Maria & Tennbakk, Berit, 2010. "Ex post monitoring of market power in hydro dominated electricity markets," Energy Policy, Elsevier, vol. 38(3), pages 1500-1509, March.
    19. Amundsen, Eirik S. & Bergman, Lars & Andersson, Bo, 1998. "Competition and Prices on the Emerging Nordic Electricity Market," SSE/EFI Working Paper Series in Economics and Finance 217, Stockholm School of Economics.
    20. Maria Kopsakangas-Savolainen, 2003. "Quantity versus Price Competition in the Deregulated Finnish Electricity Markets," Finnish Economic Papers, Finnish Economic Association, vol. 16(2), pages 51-60, Autumn.

    More about this item

    Keywords

    Electricity; nuclear phaseout; dynamic partial equilibrium; CO2 emissions; firm objectives;
    All these keywords.

    JEL classification:

    • L79 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Other
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Helena Lundin (email available below). General contact details of provider: https://edirc.repec.org/data/erhhsse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.