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Carbon Charges in Electricity Markets with Strategic Behavior and Transmission

Anthony Downward

Year: 2010
Volume: Volume 31
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol31-No4-7
View Abstract

We examine the effect of introducing a carbon charge on electricity gen�eration. We model this by way of a two generator Cournot game over a two node electricity network. We find that within the electricity system, emissions of carbon dioxide can increase after a carbon charge is introduced.

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