Phasing out coal - An impact analysis comparing five large-scale electricity market models

Arne Pöstges, Michael Bucksteeg, Oliver Ruhnau, Diana Böttger, Markus Haller, Eglantine Künle, David Ritter, Richard Schmitz and Michael Wiedmann

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: Climate target achievement has a crucial influence on the modelling and the decision processes in the energy sector. It induced the development of several policy instruments to mitigate greenhouse gas emissions, including administrative and market-based mechanisms for phasing out coal-fired generation technologies. In order to analyse such instruments, electricity market and energy system models are widely used. However, results and corresponding recommendations largely depend on the formulation of the respective model. This motivates a systematic comparison of five large-scale electricity market models which are applied to European scenarios considering the period until 2030. An evolved diff-in-diff approach is proposed to analyse the effects of two coal phase-out strategies. This contribution expands on that of earlier studies and provides some more general takeaways for both modellers and decision-makers. For instance, the evolved diff-in-diff analysis shows the influence of the reference scenario when evaluating a policy instrument. Furthermore, the importance of technical aspects such as constraints for combined heat and power plants are discussed and implications regarding three dimensions (economic, environmental, and security of supply) are presented.

Keywords: model comparison; coal phase-out; electricity market model; energy policy (search for similar items in EconPapers)
JEL-codes: P11 P28 Q4 Q48 Q51 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Phasing out coal: An impact analysis comparing five large-scale electricity market models (2022)
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