The Opening of the European Electricity Market and Environmental Policy: Does the Degree of Competition Matter? | Zendy

Andrea Bigano | Zendy; Stef Proost | Zendy

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The Opening of the European Electricity Market and Environmental Policy: Does the Degree of Competition Matter?

Author(s) -

Andrea Bigano,

Stef Proost

Publication year - 2004

Publication title -

ssrn electronic journal

Language(s) - English

Resource type - Journals

ISSN - 1556-5068

DOI - 10.2139/ssrn.524483

Subject(s) - degree (music) , competition (biology) , electricity , electricity market , environmental policy , economics , industrial organization , business , natural resource economics , engineering , physics , biology , acoustics , ecology , electrical engineering

This paper studies the relevance of strategic trade effects in the environmental policy for the European electricity sector. The production, investment and trade of electricity are modelled for four European countries. Three market regimes are distinguished: perfect competition, price regulation and Cournot competition. The model is used to examine the effect of the degree of competition on the state of the environment and to study the strategic trade effects of unilateral environmental policies.

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