Liberalising the energy markets of Western Europe : a computable equilibrium model approach
AbstractUsing a computable equilibrium model, the short-run effects of a radical liberalization of the West European natural gas and electricity markets are examined. In each model country, oil, gas, coal and electricity are produced, traded and consumed. There are world markets for oil and coal, and well-integrated competitive markets for gas and electricity in Western Europe. Gas and electricity are transported and traded across markets under the assumption of ideal third-party access regimes for transportation and limited capacities in the transportation networks. It is found that relative to the data year 1996, radical liberalization reduces the average end-user price of natural gas by around 20%, and the average end-user price of electricity by around 50%. The supply of electricity increases by around 20%, mainly due to increased coal power production. After such liberalization, coal power emerges with the largest market share of electricity production in Western Europe.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Oslo University, Department of Economics in its series Memorandum with number 14/2001.
Date of creation: 2001
Date of revision:
Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
Other versions of this item:
- 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 and Francis Journals, vol. 36(19), pages 2137-2149.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rolf Golombek & Jan Braten, 1994. "Incomplete International Climate Agreements: Optimal Carbon Taxes, Market Failures and Welfare Effects," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 141-166.
- Rolf Golombek & Eystein Gjelsvik & Knut Einar Rosendahl, 1995. "Effects of Liberalizing the Natural Gas Markets in Western Europe," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 85-112.
- von der Fehr, Nils-Henrik M & Sandsbraten, Lise, 1997. " Water on Fire: Gains from Electricity Trade," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(2), pages 281-97, June.
- 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.
- 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 47, Stockholm School of Economics.
- Eirik Amundsen & Sigve Tjotta, 1997. "Trade and price variation in an integrated European power market," Applied Economics, Taylor and Francis Journals, vol. 29(6), pages 745-757.
- Lars Lindholt, 2005. "Beyond Kyoto: backstop technologies and endogenous prices on CO2 permits and fossil fuels," Applied Economics, Taylor and Francis Journals, vol. 37(17), pages 2019-2036.
- Clemens Haftendorn & Franziska Holz, 2008. "Analysis of the World Market for Steam Coal Using a Complementarity Model," Discussion Papers of DIW Berlin 818, DIW Berlin, German Institute for Economic Research.
- Billette de Villemeur, Etienne & Pineau, Pierre-Olivier, 2012.
"Regulation and electricity market integration: When trade introduces inefficiencies,"
41251, University Library of Munich, Germany.
- Billette de Villemeur, Etienne & Pineau, Pierre-Olivier, 2012. "Regulation and electricity market integration: When trade introduces inefficiencies," Energy Economics, Elsevier, vol. 34(2), pages 529-535.
- Egging, Ruud & Gabriel, Steven A. & Holz, Franziska & Zhuang, Jifang, 2008.
"A complementarity model for the European natural gas market,"
Elsevier, vol. 36(7), pages 2385-2414, July.
- Ruud Egging & Steven A. Gabriel & Franziska Holz & Jifang Zhuang, 2007. "A Complementarity Model for the European Natural Gas Market," Discussion Papers of DIW Berlin 732, DIW Berlin, German Institute for Economic Research.
- Aune, Finn Roar & Golombek, Rolf & Kittelsen, Sverre A. C., 2003.
"Does Increased Extraction of Natural Gas Reduce Carbon Emissions?,"
34/2003, Oslo University, Department of Economics.
- Finn Aune & Rolf Golombek & Sverre Kittelsen, 2004. "Does Increased Extraction of Natural Gas Reduce Carbon Emissions?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 29(4), pages 379-400, December.
- Eirik Lund Sagen & Finn Roar Aune, 2004. "The Future European Natural Gas Market - are lower gas prices attainable?," Discussion Papers 379, Research Department of Statistics Norway.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rhiana Bergh-Seeley).
If references are entirely missing, you can add them using this form.