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The Opening of the European Electricity Market and Environmental Policy: Does the Degree of Competition Matter?

Author

Listed:
  • Andrea Bigano

    (Fondazione Eni Enrico Mattei, the Abdus Salam Center for Theoretical Physics and the Center for Economic Studies, Katholieke Universiteit Leuven)

  • Stef Proost

    (Center for Economic Studies, Katholieke Universiteit Leuven)

Abstract

This paper studies the relevance of strategic trade effects in the environmental policy for the European electricity sector. The production, investment and trade of electricity are modelled for four European countries. Three market regimes are distinguished: perfect competition, price regulation and Cournot competition. The model is used to examine the effect of the degree of competition on the state of the environment and to study the strategic trade effects of unilateral environmental policies.

Suggested Citation

  • Andrea Bigano & Stef Proost, 2004. "The Opening of the European Electricity Market and Environmental Policy: Does the Degree of Competition Matter?," Working Papers 2004.40, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2004.40
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    Citations

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    Cited by:

    1. Lise, Wietze & Kruseman, Gideon, 2008. "Long-term price and environmental effects in a liberalised electricity market," Energy Economics, Elsevier, vol. 30(2), pages 230-248, March.
    2. Thure Traber & Thure Traber & Claudia Kemfert, 2007. "Future European Electricity Technologies under Emission Trading: The Potential Role of Fossil Fuels and Carbon Capture and Sequestration (CCS)," Energy and Environmental Modeling 2007 24000060, EcoMod.
    3. Thure Traber & Claudia Kemfert, 2007. "Impacts of the German Support for Renewable Energy on Electricity Prices, Emissions and Profits: An Analysis Based on a European Electricity Market Model," Discussion Papers of DIW Berlin 712, DIW Berlin, German Institute for Economic Research.

    More about this item

    Keywords

    Electricity; Trade and the Environment;

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • F18 - International Economics - - Trade - - - Trade and Environment
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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