search query: @freeterm emissions / total: 13
reference: 7 / 13
| Author: | Newbery D. M. |
| Title: | Climate change policy and it's effect on market power in the gas market |
| Journal: | Journal of the European Economic Association
2008 : JUN, VOL. 6:4, p. 727-751 |
| Index terms: | climate european union gas industry |
| Freeterms: | emissions climate change gas market carbon |
| Language: | eng |
| Abstract: | The European Emissions Trading Scheme (ETS) limits CO2 emissions from covered sectors, especially electricity until December 2007, after which a new set of Allowances will be published. The article demonstrates that the impact of controlling the amount rather than the price of carbon is to decrease the elasticity of demand for gas, strengthening the market power of gas suppliers, and also amplifying the impact of gas price increases on the price of electricity. A rough estimate using just British data suggests that this could grow gas market power by 50%. |
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