Carbon Charges in Electricity Markets with Strategic Behavior and Transmission

Anthony Downward

The Energy Journal, 2010, vol. 31, issue 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.

Keywords: Electricity market; Cournot; Climate policy; carbon tax; strategic behavior (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:31:y:2010:i:4:p:159-166

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

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