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The Impact of Efficient Carbon and Gas Pricing on the Russian Electricity Market

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  • Nadia Chernenko

Abstract

The paper examines the possible interactions of various policy proposals to introduce carbon taxation, adjust the domestic price of gas to export parity and build a major electricity interconnector, and their impact on carbon emissions and the fuel mix of the Russian electricity supply industry. Without raising gas prices, a carbon tax of €25/tonne CO2 reduces emissions by 13% and the output of coal-fired plant by nearly 50%, with the major impact at €6.3-12.5/tonne. Moving gas prices to export parity substantially offsets this effect, and requires higher carbon taxes to reduce emissions by the same amount, as does building the prospective interconnector "Ural-Siberia".

Suggested Citation

  • Nadia Chernenko, 2013. "The Impact of Efficient Carbon and Gas Pricing on the Russian Electricity Market," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
  • Handle: RePEc:aen:eeepjl:2_1_a05
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    References listed on IDEAS

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    1. David M. Newbery, 2008. "Climate Change Policy and Its Effect on Market Power in the Gas Market," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 727-751, June.
    2. Xu Yi-Chong, 2004. "Electricity Reform in China, India and Russia," Books, Edward Elgar Publishing, number 3200.
    3. Fedor Veselov & Alla Makarova & Andrei Khorshev, 2010. "Impact of restriction measures for greenhouse gas emission on development of electric power industry in Russia," International Journal of Low-Carbon Technologies, Oxford University Press, vol. 5(4), pages 303-310, July.
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    Cited by:

    1. Bratanova, Alexandra & Robinson, Jacqueline & Wagner, Liam, 2016. "New technology adoption for Russian energy generation: What does it cost? A case study for Moscow," Applied Energy, Elsevier, vol. 162(C), pages 924-939.

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