Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Market Power with Tradable Performance-Based CO2 Emission Standards in the Electricity Sector
Stockholm University, Faculty of Social Sciences, Department of Computer and Systems Sciences. University College London, United Kingdom; HEC Montreal, Canada.
2018 (English)In: Energy Journal, ISSN 0195-6574, E-ISSN 1944-9089, Vol. 39, no 6, p. 121-145Article in journal (Refereed) Published
Abstract [en]

The U.S. Clean Power Plan stipulates a state-specific performance-based CO2 emission standard, delegating states with considerable flexibility for using either a tradable performance-based or a mass-based permit program. This paper analyzes these two standards under imperfect competitive. We limit our attention to (1) short-run analyses and (2) a situation in which all states are subject to the same type of standard. We show that while the cross-subsidy inherent in the performance-based standard might effectively reduce power prices, it could also inflate energy consumption. A dominant firm with a relatively clean endowment under the performance-based standard would be able to manipulate the electricity market as well as to elevate permit prices, which might worsen market outcomes compared to its mass-based counterpart. On the other hand, the "cross-subsidy" could be the dominant force leading to a higher social welfare if the leader has a relatively dirty endowment.

Place, publisher, year, edition, pages
2018. Vol. 39, no 6, p. 121-145
Keywords [en]
Climate policy, Electricity industry, Mathematical program with equilibrium constraints, Performance-based standards
National Category
Information Systems
Research subject
Computer and Systems Sciences
Identifiers
URN: urn:nbn:se:su:diva-161404DOI: 10.5547/01956574.39.6.ycheISI: 000447750400006OAI: oai:DiVA.org:su-161404DiVA, id: diva2:1258217
Available from: 2018-10-24 Created: 2018-10-24 Last updated: 2018-12-10Bibliographically approved

Open Access in DiVA

No full text in DiVA

Other links

Publisher's full text

Search in DiVA

By author/editor
Siddiqui, Afzal S.
By organisation
Department of Computer and Systems Sciences
In the same journal
Energy Journal
Information Systems

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 10 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf