In line with economic theory, carbon ETS determines a rise in marginal cost equal to the carbon opportunity cost regardless of whether carbon allowances are allocated free of charge or not. Hence, common sense would suggest that .rms in imperfectly competitive markets will pass-through into...

Simulation models of emissions trading performance are generally based on the assumption that carbon prices are fully (or almost fully) passed through to energy prices (with pass-through rates equal or very close to one). Unfortunately, empirical analyses of wholesale electricity spot markets do...

Why do power prices seem to be correlated with the carbon price in some markets and not in others? This crucial question is at the centre of Francesco Gullì's enlightening book, through which the contributing authors investigate a number of related issues. In particular, they explore why power...