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 KU Leuven, Department of Economics - Research Group 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: D43 F18 L94 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2003-12
New Economics Papers: this item is included in nep-com, nep-eec, nep-env and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:ete:etewps:ete0315

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