Promoting Green Electricity through Differentiated Electricity Tax Schemes

Holzer, Kateryna; Espa, Ilaria; Payosova, Tetyana

doi:10.1017/9781316681275.019

Cited by 4 publications

(1 citation statement)

References 18 publications

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“…Border tax adjustments (BTA) have in recent years been increasingly discussed in relation to enforcing an environmental tax on imported goods within WTO law. A particular focus of research has been the interplay of emission trading schemes and 7 See Holzer et al (2017) and Cottier et al (2014a, b).…”

Section: Carbon Tax With Border Tax Adjustmentsmentioning

confidence: 99%

A Unilateral Climate and Supply Market Model

Blume-Werry

Koller

Everts

2018

Understanding Risks and Uncertainties in Energy and Climate Policy

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In the midst of its respective energy transitions, the European power sector faces several challenges. Low levels of both European Union Emissions Trading Scheme (EU ETS) allowance prices and wholesale power prices fuelled concerns over drivers for decarbonisation and long-term generation adequacy. Whilst some countries have introduced capacity remuneration mechanisms to ensure generation adequacy, reforming the EU ETS has proven to be difficult. This paper proposes a unilateral approach by a state introducing a CO 2 levy that internalises and prices CO 2 at a national level. The suggested climate and supply market model thereby incentivises and rewards production from CO 2 -neutral sources during times when it does not cover the targeted share of production. Prior to describing the model in detail, this paper discusses the theoretical policy steering background and the problems associated with current energy policies. For a broader picture, other CO 2 taxation models are briefly presented. This is followed by a discussion on the legal aspects of the model, its compatibility with international as well as EU law. The model is explored further by using Switzerland as an example, showing that a crosssector carbon price can be implemented at acceptable costs for consumers. Last but not least, the paper examines varieties of the model and the adaption potential for European countries.239 240 E. Blume-Werry et al.

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Section: Carbon Tax With Border Tax Adjustmentsmentioning

confidence: 99%

A Unilateral Climate and Supply Market Model

Blume-Werry

Koller

Everts

2018

Understanding Risks and Uncertainties in Energy and Climate Policy

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Green Electricity Promotion Schemes

Cagdas Artantas

2023

European Yearbook of International Economic Law

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Eyes on the Price: Which Power Generation Technologies Set the Market Price? Price Setting in European Electricity Markets: An Application to the Proposed Dutch Carbon Price Floor

Blume-Werry¹,

Faber

Hirth

et al. 2019

SSRN Journal

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Upon discussion of price setting on electricity wholesale markets, many refer to the so-called merit order model. Conventional wisdom holds that during most hours of the year, coal-or natural gas-fired power plants set the price on European markets. In this context, this paper analyses price setting on European power markets. We use a fundamental electricity market model of interconnected bidding zones to determine hourly price-setting technologies for the year 2020. We find a price-setting pattern that is more complex and nuanced than the conventional wisdom suggests: across all researched countries, coal-and natural gas-fired power plants set the price for only 40 per cent of all hours. Other power generation technologies such as wind, biomass, hydro and nuclear power plants as well as lignite-fired plants set the price during the rest of the year. On some markets, the price setting is characterised by a high level of interconnectivity and thus foreign influence-as illustrated by the example of the Netherlands. During some 75 per cent of hours, foreign power plants set the price on the Dutch market, whilst price setting in other more isolated markets is barely affected by foreign markets. Hence, applying the price setting analysis to the proposed Dutch carbon price floor, we show that different carbon prices have little effect on the technological structure of the price-setting units. In this respect, the impacts of the unilateral initiative are limited. There are, however, considerable changes to be observed in wholesale power prices, import/export balances as well as production volumes and subsequent CO2 outputs of lignite-, coal-and gas-fired power plants.

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Promoting Green Electricity through Differentiated Electricity Tax Schemes

Cited by 4 publications

References 18 publications

A Unilateral Climate and Supply Market Model

A Unilateral Climate and Supply Market Model

Green Electricity Promotion Schemes

Eyes on the Price: Which Power Generation Technologies Set the Market Price? Price Setting in European Electricity Markets: An Application to the Proposed Dutch Carbon Price Floor

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