Cutting Carbon Through Fuel-Switching Under the EU ETS
| Autor: | Yiyi Bai, Samuel Jovan Okullo |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
History
Polymers and Plastics Electricity price business.industry Allowance (money) chemistry.chemical_element International economics Industrial and Manufacturing Engineering Electricity generation chemistry media_common.cataloged_instance Coal Business Emissions trading Business and International Management European union Carbon media_common |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| Popis: | We show that power generators responded largely in line with theory to the European Union (EU) Emission Trading System (ETS). In particular, between 2008 and 2018: (i) the qualitative response of the EU ETS allowance price to variations in both the gas and coal price—the two preeminent drivers of short-term fuel-switching—is as prescribed by economic theory, (ii) allowance banking partially helped generators reduce long-run compliance costs, and (iii) the response of the electricity price to variations in the allowance price is, for several EU ETS countries, consistent with complete pass-through of allowance costs to wholesale markets. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|