Regulatory Conflict? Environmental and Economic Regulation of Electricity Generation

Melinda Acutt and Caroline Elliott
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Melinda Acutt: University of Liverpool
Caroline Elliott: Lancaster University

No 1999.40, Working Papers from Fondazione Eni Enrico Mattei

Abstract: Implementation of policies aimed at reducing atmospheric emissions has drawnattention to the need to integrate policies aimed at protection of the environment intoother policy areas such as energy. In this paper we are concerned with the interactionof environmental policies aimed at reducing pollution, and economic policies aimed atreducing market power, in the electricity generation industry. While our analysisfocuses on the post privatisation experiences in England and Wales, the analysis isintended to be of a wider applicability. In a theoretical model we find that there arewelfare gains to be made from a move from the current non-cooperative regulatoryregime to cooperative regulation between the environmental and economic regulators- a result that holds for the alternative environmental policies of a technology standardand an emissions tax.

Keywords: Environmental regulation; Economic regulation; Electricity generation (search for similar items in EconPapers)
JEL-codes: H2 L5 Q4 (search for similar items in EconPapers)
Date: 1999-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:1999.40

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