The development of European power markets is highly influenced by integrated electricity and heat systems. Therefore, decarbonization policies for the electricity and heat sectors, as well as numerical models that are used to guide such policies, should consider cross-sectoral interdependencies....

The European electricity industry, the dominant sector of the world’s largest cap-and-trade scheme, is one of the most-studied examples of carbon pricing. In particular, numerical models are often used to study the uncertain future development of carbon prices and emissions. While parameter...