| Title | Environmental regulation in transmission-constrained electricity markets |
| Publication Type | Conference Paper |
| Year of Publication | 2009 |
| Authors | Anthony Papavasiliou, Yihsu Chen, Shmuel S Oren |
| Conference Name | 2009 IEEE Power & Energy Society (PES) General Meeting |
| Date Published | 07/2009 |
| Publisher | IEEE |
| Conference Location | Calgary, Canada |
| ISBN Number | 978-1-4244-4241-6 |
| Keywords | CERTS, electricity markets, reliability and markets, RM10-001 |
| Abstract | We discuss potential competitive effects of regulating carbon emissions in a transmission constrained electricity market. We compare two regulatory instruments, renewable portfolio standards and taxing emmissions. We derive general conclusions about impacts on prices and output on a three node network. We find that renewable portfolio standards increase the market power of nonpolluting generators whereas the tax is market-power neutral. We verify our conclusions through simulations. |
| DOI | 10.1109/PES.2009.5275408 |
