The opening of the European electricity market and environmental policy: does the degree of competition matter?Keywords: Electricity, Trade and the Environment

Andrea Bigano and Stef Proost

Energy, Transport and Environment Working Papers Series from Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment

Abstract: This paper studies the relevance of strategic trade effects in the environmental policy for the European electricity sector. The production, investment and trade of electricity are modelled for four European countries. Three market regimes are distinguished: perfect competition, price regulation and Cournot competition. The model is used to examine the effect of the degree of competition on the state of the environment and to study the strategic trade effects of unilateral environmental policies.

JEL-codes: L94 F18 D43 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-eec, nep-env and nep-mic
Date: 2003-12

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Persistent link: http://EconPapers.repec.org/RePEc:ete:etewps:ete0315

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