Facebook LinkedIn Twitter
Shop

IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

Carbon Charges in Electricity Markets with Strategic Behavior and Transmission

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.

Purchase ( $25 )

Energy Specializations: Electricity – Markets and Prices ; Energy and the Environment – Climate Change and Greenhouse Gases; Energy and the Environment – Policy and Regulation

JEL Codes: Q54: Climate; Natural Disasters and Their Management; Global Warming, Q48: Energy: Government Policy, Q41: Energy: Demand and Supply; Prices, Q53: Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling, Q35: Hydrocarbon Resources, D43: Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection

Keywords: Electricity market, Cournot, Climate policy, carbon tax, strategic behavior

DOI: 10.5547/ISSN0195-6574-EJ-Vol31-No4-7

References: Reference information is available for this article. Join IAEE, log in, or purchase the article to view reference data.


Published in Volume 31, Number 4 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.