Markets for Carbon and Power Pricing in Europe
Show Less

Markets for Carbon and Power Pricing in Europe

Theoretical Issues and Empirical Analyses

Edited by Francesco Gullì

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.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 9: The Joint Impact of Carbon Emissions Trading and Tradable Green Certificates on the Evolution of Liberalized Electricity Markets: The Spanish Case

Pedro Linares and Francisco J. Santos


9. The joint impact of carbon emissions trading and tradable green certificates on the evolution of liberalized electricity markets: the Spanish case Pedro Linares and Francisco J. Santos1 INTRODUCTION 9.1 Climate change policies have clearly been escalating in the political agenda in recent years. The growing concern for the impacts of climate change, as recently updated by the Intergovernmental Panel on Climate Change (IPCC, 2007) is driving many governments to take action on reducing greenhouse gas emissions. Among the many policies available for achieving reductions, the most popular up to now have been setting up emissions trading markets, carbon taxes, and also the promotion of renewable energies. Emissions trading was contemplated under the Kyoto Protocol as one of the mechanisms available to reduce the cost of complying with reduction targets. However, it was not until the European Union implemented its Emissions Trading Scheme or ETS (EU Directive 2003/87/EC) that these markets really took flight. The relatively successful European experience has also prompted other countries to consider this mechanism: the US Senate, for instance, is currently considering several bills for the introduction of such a scheme, and other countries are doing the same. The implementation of these markets is also making carbon taxes redundant, and so the countries which featured them are abandoning this instrument. Renewable energy (RE) promotion policies, on the other hand, have a longer history. In fact, they were devised as a way to reduce energy dependency, and consideration was first given to them around 1973. However,...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.