The Impact of Efficient Carbon and Gas Pricing on the Russian Electricity Market

Nadia Chernenko

Economics of Energy & Environmental Policy, 2013, vol. Volume 2, issue Number 1

Abstract: The paper examines the possible interactions of various policy proposals to introduce carbon taxation, adjust the domestic price of gas to export parity and build a major electricity interconnector, and their impact on carbon emissions and the fuel mix of the Russian electricity supply industry. Without raising gas prices, a carbon tax of €25/tonne CO2 reduces emissions by 13% and the output of coal-fired plant by nearly 50%, with the major impact at €6.3-12.5/tonne. Moving gas prices to export parity substantially offsets this effect, and requires higher carbon taxes to reduce emissions by the same amount, as does building the prospective interconnector "Ural-Siberia".

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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