Falbo, Paolo; Felletti, Daniele; Stefani, Silvana - In: Energy Economics 35 (2013) C, pp. 14-21
This paper focuses on the impact of EUAs on the optimal policy of a competitive electricity producer. The effect of grandfathering is consistently shown to introduce significant distortions to the system. It is theoretically shown that there is a threshold value of carbon price so that, for...