Title :
Environmental regulation in transmission-constrained electricity markets
Author :
Papavasiliou, Anthony ; Chen, Yihsu ; Oren, Shmuel S.
Author_Institution :
Dept. of Ind. Eng. & Oper. Res., UC Berkeley, Berkeley, CA, USA
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.
Keywords :
carbon; power markets; C; environmental regulation; regulatory instruments; renewable portfolio standards; taxing emmissions; transmission-constrained electricity markets; Costs; Electricity supply industry; Environmental economics; Geothermal power generation; Industrial engineering; Portfolios; Power generation; Renewable energy resources; Solar power generation; Wind energy generation;
Conference_Titel :
Power & Energy Society General Meeting, 2009. PES '09. IEEE
Conference_Location :
Calgary, AB
Print_ISBN :
978-1-4244-4241-6
DOI :
10.1109/PES.2009.5275408
