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

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  • Andersson, Bo

    (Department of Economics)

  • Hadén, Erik

    (Department of Economics)

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    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.

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    File URL: http://swopec.hhs.se/hastef/papers/hastef0105.ps
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    Bibliographic Info

    Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 105.

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    Length: 33 pages
    Date of creation: Mar 1996
    Date of revision:
    Handle: RePEc:hhs:hastef:0105

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    Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
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    Related research

    Keywords: Electricity; nuclear phaseout; dynamic partial equilibrium; CO2 emissions; firm objectives;

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    1. Bergman, Lars & Andersson, Bo, 1995. "Market Structure and the Price of Electricity: An ex ante Analysis of the deregulated Swedish Electricity Market," Working Paper Series in Economics and Finance, Stockholm School of Economics 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, International Association for Energy Economics, vol. 0(Number 2), pages 97-110.
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