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Evaluating the application of different pricing regimes and low carbon investments in the European electricity market

  • Oggioni, Giorgia
  • Smeers, Yves
Registered author(s):

    The EU-ETS is the first measure initiated by the EU to contribute to the decarbonization of the European energy sector. It is a cap and trade system that requires industries participating to the program to procure allowances to cover their emissions. Electricity Intensive Industries (EIIs) have complained that the system put their European plants at disadvantage compared to facilities located outside the EU. They have asked for actions to mitigate this effect; one of them is to have access to long term contracts with electricity suppliers, ideally with those operating carbon free plants. This paper presents and illustrates a method for assessing the impact of this measure on EIIs participating to the EU cap and trade system.

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    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 34 (2012)
    Issue (Month): 5 ()
    Pages: 1356-1369

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    Handle: RePEc:eee:eneeco:v:34:y:2012:i:5:p:1356-1369
    Contact details of provider: Web page: http://www.elsevier.com/locate/eneco

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    7. Currier, Kevin M, 1994. "Existence and Uniqueness of Average Cost Pricing Equilibria: A Degree Theoretic Approach," Bulletin of Economic Research, Wiley Blackwell, vol. 46(4), pages 331-39, October.
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