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How CO2 prices accelerate decarbonisation – The case of coal-fired generation in Germany

Author

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  • Sgarciu, Smaranda
  • Scholz, Daniel
  • Müsgens, Felix

Abstract

This paper analyses the potential impact of the world's two main coal phase-out instruments: 1) direct regulatory intervention restricting the operation of existing coal-fired generation capacity and prohibiting investment in new capacity and 2) market-based CO2-pricing instruments that make emission-intensive coal-fired generation less competitive. We quantify these instruments' potential effects in the empirical setting of Germany, where both instruments are employed concurrently. However, this paper's approach and methodology can be applied in any jurisdiction or energy system worldwide.

Suggested Citation

  • Sgarciu, Smaranda & Scholz, Daniel & Müsgens, Felix, 2023. "How CO2 prices accelerate decarbonisation – The case of coal-fired generation in Germany," Energy Policy, Elsevier, vol. 173(C).
    • Handle: RePEc:eee:enepol:v:173:y:2023:i:c:s0301421522005948
    DOI: 10.1016/j.enpol.2022.113375
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