Carbon Charges in Electricity Markets with Strategic Behavior and Transmission

Anthony Downward

The Energy Journal, 2010, vol. Volume 31, issue Number 4, 159-166

Abstract: We examine the effect of introducing a carbon charge on electricity gen­eration. 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.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (13)

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