How emission certificate allocations distort fossil investments: The German example

How emission certificate allocations distort fossil investments: The German example

0.00 Avg rating0 Votes
Article ID: iaor20113541
Volume: 39
Issue: 4
Start Page Number: 1975
End Page Number: 1987
Publication Date: Apr 2011
Journal: Energy Policy
Authors: , ,
Keywords: coal, natural gas markets, public policy, emissions
Abstract:

We study how early emission certificate allocations in Germany distort fossil investments. We examine the role of windfall profits in the overall profitabilities of a new hard coal compared to a natural gas plant. We find that technology specific grandfathering over any period does not induce a change in preferences away from hard coal. Natural gas would have been preferred under auctioning or a technology neutral allocation though.

Reviews

Required fields are marked *. Your email address will not be published.