Hydroelectric power in emissions-constrained electricity generation

The positioning of generating plant in rank (merit) order has been based traditionally on minimised system economic cost. If regulations were introduced to place a financial penalty on gaseous emissions from fossil-fuelled power stations, the result would be an increased economic burden on such generating plant. This paper examines the effect on merit order of the imposition of a tax on carbon dioxide emissions, and looks in particular at the potential role to be played by hydroelectric power