Markets for Carbon and Power Pricing in Europe: Theoretical Issues and Empirical Analyses (New Horizons in Environmental Economics)

Why do power prices seem to be correlated with the carbon price in some markets and not in others? This crucial question is at the centre of Francesco GullA's enlightening book, through which the contributing authors explore a number of related issues. These include why power firms pass-through into power prices in some cases more and in others less than the carbon opportunity cost and what the relationship is between the pass-through and the structure of the power market. This informative study brings together and interprets original contributions by leading experts from every EU country.Beginning with an overview of the European Union Emissions Trading System (EU ETS) along with an in-depth analysis of the early results and the theoretical issues involved, this book then goes onto explore the main European power markets via a number of empirical case studies. Overall, this volume offers a genuinely comprehensive analysis on the relationship between carbon and power markets and, as such, will prove a valuable contribution to the debate on the EU ETS and to the literature on the interaction between environmental policy and the structure of environmentally regulated markets. "Markets for Carbon and Power Pricing in Europe" will be of great interest to researchers and academics within general economics, environmental and energy economics. It will also be warmly welcomed by policymakers, regulators and power sector operators. Whether It Concerns Environmental Economics Or Law And Economics, Two Areas Of Science In Which I Feel Well At Home, Publisher Edward Elgar Is A Front-runner Time And Again With Relevant And Solid Publications. This Time Is No Exception, With This Book Edited By Francesco Gullì. Edwin Woerdman, Tijdschrift Voor Energierecht Why Do Power Prices Seem To Be Correlated With The Carbon Price In Some Markets And Not In Others? This Crucial Question Is At The Centre Of Francesco Gullì S Enlightening Book, Through Which The Contributing Authors Investigate A Number Of Related Issues. In Particular, They Explore Why Power Firms Are Not Consistent In Passing-through Into Power Prices The Opportunity Cost Of Carbon. They Also Examine The Relationship Between The Pass-through Mechanism And The Structure Of The Power Market. This Informative Study Brings Together And Interprets Original Contributions By Leading Experts From Every Eu Country. Beginning With An Overview Of The European Union Emissions Trading System (eu Ets) Along With An In-depth Analysis Of The Early Results And The Theoretical Issues Involved, The Book Then Goes On To Explore The Main European Power Markets Via A Number Of Empirical Case Studies. Overall, This Volume Offers A Genuinely Comprehensive Analysis On The Relationship Between Carbon And Power Markets And, As Such, Will Prove A Valuable Contribution To The Debate On The Eu Ets And To The Literature On The Interaction Between Environmental Policy And The Structure Of Environmentally Regulated Markets. Markets For Carbon And Power Pricing In Europe Will Be Of Great Interest To Researchers And Academics Within General Economics, Environmental And Energy Economics. It Will Also Be Warmly Welcomed By Policymakers, Regulators And Power Sector Operators. Why do power prices seem to be correlated with the carbon price in some markets and not in others? This crucial question is at the centre of Francesco Gulli's enlightening book, through which the contributing authors investigate a number of related issues. In particular, they explore why power firms are not consistent in passing-through into power prices the opportunity cost of carbon. They also examine the relationship between the pass-through mechanism and the structure of the power market.This informative study brings together and interprets original contributions by leading experts from every EU country. Beginning with an overview of the European Union Emissions Trading System (EU ETS) along with an in-depth analysis of the early results and the theoretical issues involved, the book then goes on to explore the main European power markets via a number of empirical case studies. Overall, this volume offers a genuinely comprehensive analysis on the relationship between carbon and power markets and, as such, will prove a valuable contribution to the debate on the EU ETS and to the literature on the interaction between environmental policy and the structure of environmentally regulated markets.Markets for Carbon and Power Pricing in Europe will be of great interest to researchers and academics within general economics, environmental and energy economics. It will also be warmly welcomed by policymakers, regulators and power sector operators. Cover......Page 1 Copyright......Page 4 Contents......Page 5 Contributors......Page 7 1. Introduction......Page 9 PART I Overview and theoretical issues......Page 19 2. The European Emissions Trading Scheme: overview, lessons and perspectives......Page 21 3. Modelling the short-run impact of‘carbon trading’ on the electricitysector......Page 44 4. From electricity prices to electricity costs: impact of emissions trading on industry’s electricity purchasing strategies......Page 88 PART II Empirical analyses......Page 107 5. Options to address concerns regarding EU ETS-induced increases in power prices and generators’ profits: the case of carbon cost pass-through in Germany and the Netherlands......Page 109 6. A vector error correction model of the interactions among gas, electricity and carbon prices: an application to the cases of Germany and the United Kingdom......Page 153 7. Impacts of the European Emissions Trading Scheme on Finnish wholesale electricity prices......Page 168 8. The impact of the European Emissions Trading Scheme on power prices in Italy: the ‘load duration curve approach’......Page 201 9. The joint impact of carbone missions trading and tradable green certificates on the evolution of liberalized electricity markets: the Spanish case......Page 221 Index......Page 243 Beginning with an overview of the European Union Emissions Trading System (EU ETS) along with an analysis of the early results and the theoretical issues involved, this book explores the main European power markets via a number of empirical case studies. It offers a comprehensive analysis on the relationship between carbon and power markets This book brings together contributions by leading experts in the field from every EU country. It begins with an overview of the EU Emissions Trading System (ETS) along with analysis of early results and the theoretical issues involved. The remainder of the book includes empirical studies of the main European power markets Edited By Francesco Gullì. Includes Bibliographical References And Index.