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To decarbonize the power sector policy-makers need to commit to long-term credible rules for climate and energy policy. Otherwise, time-inconsistent policy-making will impair investments into low-carbon technologies. However, the future benefits and costs of decarbonization are subject to...
Persistent link: https://www.econbiz.de/10012960475
We extend existing theoretical frameworks describing electricity markets where each generator provides a Market Operator (MO) with a supply schedule in advance. The MO combines these with demand forecasts to produce equilibrium prices and instructs firms on their dispatch. We incorporate the...
Persistent link: https://www.econbiz.de/10012927098
pumped-storage plants. This is about seven times the entire pumpedstorage capacity currently available in western Europe … Europe. This will make it difficult for Germany to pursue its energy revolution towards green autarchy, as intended …
Persistent link: https://www.econbiz.de/10012986654
While prior literature has identified various effects of environmental policy, this note uses the example of a proposed carbon permit system to illustrate and discuss six different types of distributional effects: (1) higher prices of carbon-intensive products, (2) changes in relative returns to...
Persistent link: https://www.econbiz.de/10013131355
There is a widespread consensus among the most important players in developed countries (voters, politicians, producers, traditional and green interest groups and bureaucracies) that a shift towards an eco-social market economy is essential for sustainable growth. Nevertheless, market-based...
Persistent link: https://www.econbiz.de/10013136587
The possibility of low-probability extreme events has reignited the debate over the optimal intensity and timing of climate policy. In this paper we therefore contribute to the literature by assessing the implications of low-probability extreme events on environmental policy in a continuous-time...
Persistent link: https://www.econbiz.de/10013139799
In the basic model of the literature on international environmental agreements (IEAs) (Barrett 1994; Rubio and Ulph 2006) the number of signatories of self-enforcing IEAs does not exceed three, if non-positive emissions are ruled out. We extend that model by introducing a composite consumer good and...
Persistent link: https://www.econbiz.de/10013086051
One country that tries to reduce greenhouse gas emissions may fear that other countries get a competitive advantage and increase emissions (“leakage”). Estimates from computable general equilibrium (CGE) models such as Elliott et al (2010a,b) indicate that 15% to 25% of abatement might be...
Persistent link: https://www.econbiz.de/10013086412
Conventional wisdom argues that environmental policy is less costly if environmental policy induces the development of cleaner technologies. In contrast to this argument, we show that the cost of environmental policy (a reduction in emissions) may be larger with induced technical change than...
Persistent link: https://www.econbiz.de/10013090604
administration. Production in the shadow economy allows firms to avoid environmental regulation policies; a large informal sector may …
Persistent link: https://www.econbiz.de/10013092159