IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v144y2020ics0301421520303773.html
   My bibliography  Save this article

Coal phase-outs and carbon prices: Interactions between EU emission trading and national carbon mitigation policies

Author

Listed:
  • Anke, Carl-Philipp
  • Hobbie, Hannes
  • Schreiber, Steffi
  • Möst, Dominik

Abstract

The European Union Emission Trading System (EU ETS) constitutes the core instrument of the European Union climate protection policy. It limits greenhouse gas emissions of its member states and aims at facilitating an efficient allocation of emission reduction across national borders. Accompanying this policy at the European level, individual member states have introduced national mitigation policies, including renewable energy (RES) expansion measures or coal phase-outs.

Suggested Citation

  • Anke, Carl-Philipp & Hobbie, Hannes & Schreiber, Steffi & Möst, Dominik, 2020. "Coal phase-outs and carbon prices: Interactions between EU emission trading and national carbon mitigation policies," Energy Policy, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:enepol:v:144:y:2020:i:c:s0301421520303773
    DOI: 10.1016/j.enpol.2020.111647
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421520303773
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2020.111647?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. de Perthuis, Christian & Trotignon, Raphael, 2014. "Governance of CO2 markets: Lessons from the EU ETS," Energy Policy, Elsevier, vol. 75(C), pages 100-106.
    2. Karsten Neuhoff & Kim Keats Martinez & Misato Sato, 2006. "Allocation, incentives and distortions: the impact of EU ETS emissions allowance allocations to the electricity sector," Climate Policy, Taylor & Francis Journals, vol. 6(1), pages 73-91, January.
    3. Chaton, Corinne & Creti, Anna & Sanin, María-Eugenia, 2018. "Assessing the implementation of the Market Stability Reserve," Energy Policy, Elsevier, vol. 118(C), pages 642-654.
    4. Yihsu Chen & Jos Sijm & Benjamin Hobbs & Wietze Lise, 2008. "Implications of CO 2 emissions trading for short-run electricity market outcomes in northwest Europe," Journal of Regulatory Economics, Springer, vol. 34(3), pages 251-281, December.
    5. Wietze Lise & Jos Sijm & Benjamin Hobbs, 2010. "The Impact of the EU ETS on Prices, Profits and Emissions in the Power Sector: Simulation Results with the COMPETES EU20 Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 23-44, September.
    6. Bonenti, Francesca & Oggioni, Giorgia & Allevi, Elisabetta & Marangoni, Giacomo, 2013. "Evaluating the EU ETS impacts on profits, investments and prices of the Italian electricity market," Energy Policy, Elsevier, vol. 59(C), pages 242-256.
    7. Kara, M. & Syri, S. & Lehtila, A. & Helynen, S. & Kekkonen, V. & Ruska, M. & Forsstrom, J., 2008. "The impacts of EU CO2 emissions trading on electricity markets and electricity consumers in Finland," Energy Economics, Elsevier, vol. 30(2), pages 193-211, March.
    8. Kollenberg, Sascha & Taschini, Luca, 2016. "Emissions trading systems with cap adjustments," Journal of Environmental Economics and Management, Elsevier, vol. 80(C), pages 20-36.
    9. Grischa Perino, 2018. "New EU ETS Phase 4 rules temporarily puncture waterbed," Nature Climate Change, Nature, vol. 8(4), pages 262-264, April.
    10. Jos Sijm & Karsten Neuhoff & Yihsu Chen, 2006. "CO 2 cost pass-through and windfall profits in the power sector," Climate Policy, Taylor & Francis Journals, vol. 6(1), pages 49-72, January.
    11. Unger, Thomas & Ahlgren, Erik O., 2005. "Impacts of a common green certificate market on electricity and CO2-emission markets in the Nordic countries," Energy Policy, Elsevier, vol. 33(16), pages 2152-2163, November.
    12. Richard Green, 2005. "Electricity and Markets," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 21(1), pages 67-87, Spring.
    13. De Jonghe, Cedric & Delarue, Erik & Belmans, Ronnie & D'haeseleer, William, 2009. "Interactions between measures for the support of electricity from renewable energy sources and CO2 mitigation," Energy Policy, Elsevier, vol. 37(11), pages 4743-4752, November.
    14. Rickels, Wilfried & Duscha, Vicki & Keller, Andreas & Peterson, Sonja, 2007. "The determinants of allowance prices in the European emissions trading scheme: Can we expect an efficient allowance market 2008?," Kiel Working Papers 1387, Kiel Institute for the World Economy (IfW Kiel).
    15. Bode, Sven, 2006. "On multi-period emissions trading in the electricity sector," HWWA Discussion Papers 343, Hamburg Institute of International Economics (HWWA).
    16. repec:dau:papers:123456789/13539 is not listed on IDEAS
    17. Gernot Klepper & Sonja Peterson, 2004. "The EU Emissions Trading Scheme. Allowance Prices, Trade Flows, Competitiveness Effects," Working Papers 2004.49, Fondazione Eni Enrico Mattei.
    18. Heinrichs, Heidi Ursula & Schumann, Diana & Vögele, Stefan & Biß, Klaus Hendrik & Shamon, Hawal & Markewitz, Peter & Többen, Johannes & Gillessen, Bastian & Gotzens, Fabian & Ernst, Anna, 2017. "Integrated assessment of a phase-out of coal-fired power plants in Germany," Energy, Elsevier, vol. 126(C), pages 285-305.
    19. Felix Reitz & Clemens Gerbaulet & Christian von Hirschhausen & Claudia Kemfert & Casimir Lorenz & Pao-Yu Oei, 2014. "Verminderte Kohleverstromung könnte zeitnah einen relevanten Beitrag zum deutschen Klimaschutzziel leisten," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 81(47), pages 1219-1229.
    20. Schleich, Joachim & Ehrhart, Karl-Martin & Hoppe, Christian & Seifert, Stefan, 2006. "Banning banking in EU emissions trading?," Energy Policy, Elsevier, vol. 34(1), pages 112-120, January.
    21. Carlén, Björn & Dahlqvist, Anna & Mandell, Svante & Marklund, Pelle, 2019. "EU ETS emissions under the cancellation mechanism - Effects of national measures," Energy Policy, Elsevier, vol. 129(C), pages 816-825.
    22. Pedro Linares & Francisco Javier Santos & Mariano Ventosa & Luis Lapiedra, 2006. "Impacts of the European Emissions Trading Scheme Directive and Permit Assignment Methods on the Spanish Electricity Sector," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 79-98.
    23. Van den Bergh, Kenneth & Delarue, Erik & D'haeseleer, William, 2013. "Impact of renewables deployment on the CO2 price and the CO2 emissions in the European electricity sector," Energy Policy, Elsevier, vol. 63(C), pages 1021-1031.
    24. Johnson, Nils & Krey, Volker & McCollum, David L. & Rao, Shilpa & Riahi, Keywan & Rogelj, Joeri, 2015. "Stranded on a low-carbon planet: Implications of climate policy for the phase-out of coal-based power plants," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 89-102.
    25. Knut Einar Rosendahl, 2019. "EU ETS and the waterbed effect," Nature Climate Change, Nature, vol. 9(10), pages 734-735, October.
    26. Weigt, Hannes & Ellerman, Denny & Delarue, Erik, 2013. "CO2 abatement from renewables in the German electricity sector: Does a CO2 price help?," Energy Economics, Elsevier, vol. 40(S1), pages 149-158.
    27. Brink, Corjan & Vollebergh, Herman R.J. & van der Werf, Edwin, 2016. "Carbon pricing in the EU: Evaluation of different EU ETS reform options," Energy Policy, Elsevier, vol. 97(C), pages 603-617.
    28. Bode, Sven, 2006. "Multi-period emissions trading in the electricity sector--winners and losers," Energy Policy, Elsevier, vol. 34(6), pages 680-691, April.
    29. Heinrichs, Heidi Ursula & Markewitz, Peter, 2017. "Long-term impacts of a coal phase-out in Germany as part of a greenhouse gas mitigation strategy," Applied Energy, Elsevier, vol. 192(C), pages 234-246.
    30. Richstein, Jörn C. & Chappin, Émile J.L. & de Vries, Laurens J., 2015. "Adjusting the CO2 cap to subsidised RES generation: Can CO2 prices be decoupled from renewable policy?," Applied Energy, Elsevier, vol. 156(C), pages 693-702.
    31. Li, Mengyu & Weng, Yuyan & Duan, Maosheng, 2019. "Emissions, energy and economic impacts of linking China’s national ETS with the EU ETS," Applied Energy, Elsevier, vol. 235(C), pages 1235-1244.
    32. Perino, Grischa & Willner, Maximilian, 2016. "Procrastinating reform: The impact of the market stability reserve on the EU ETS," Journal of Environmental Economics and Management, Elsevier, vol. 80(C), pages 37-52.
    33. Klepper, Gernot & Peterson, Sonja, 2004. "The EU emissions trading scheme allowance prices, trade flows and competitiveness effects," Open Access Publications from Kiel Institute for the World Economy 3270, Kiel Institute for the World Economy (IfW Kiel).
    34. Böhringer, Christoph & Keller, Andreas & Bortolamedi, Markus & Rahmeier Seyffarth, Anelise, 2016. "Good things do not always come in threes: On the excess cost of overlapping regulation in EU climate policy," Energy Policy, Elsevier, vol. 94(C), pages 502-508.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martin Kittel & Wolf-Peter Schill, 2021. "Renewable Energy Targets and Unintended Storage Cycling: Implications for Energy Modeling," Papers 2107.13380, arXiv.org, revised Sep 2021.
    2. Ngo, Thanh Quang, 2021. "How do environmental regulations affect carbon emission and energy efficiency patterns? A provincial-level analysis of Chinese energy-intensive industries," MPRA Paper 109674, University Library of Munich, Germany.
    3. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    4. Christoph Böhringer & Carsten Helm, 2023. "The Reverse Waterbed Effect of Sector Coupling — Unilateral Climate Policies and Multilateral Emissions Trading," CESifo Working Paper Series 10362, CESifo.
    5. Tan, Xiujie & Sun, Qian & Wang, Meiji & Se Cheong, Tsun & Yan Shum, Wai & Huang, Jinpeng, 2022. "Assessing the effects of emissions trading systems on energy consumption and energy mix," Applied Energy, Elsevier, vol. 310(C).
    6. Hickey, Conor & O'Brien, John & Caldecott, Ben & McInerney, Celine & Ó Gallachóir, Brian, 2021. "Can European electric utilities manage asset impairments arising from net zero carbon targets?," Journal of Corporate Finance, Elsevier, vol. 70(C).
    7. Wang, Xiao-Qing & Su, Chi-Wei & Lobonţ, Oana-Ramona & Li, Hao & Nicoleta-Claudia, Moldovan, 2022. "Is China's carbon trading market efficient? Evidence from emissions trading scheme pilots," Energy, Elsevier, vol. 245(C).
    8. Hwang Goh, Hui & Shi, Shuaiwei & Liang, Xue & Zhang, Dongdong & Dai, Wei & Liu, Hui & Yuong Wong, Shen & Agustiono Kurniawan, Tonni & Chen Goh, Kai & Leei Cham, Chin, 2022. "Optimal energy scheduling of grid-connected microgrids with demand side response considering uncertainty," Applied Energy, Elsevier, vol. 327(C).
    9. Zhang, Jiekuan, 2023. "Emissions trading scheme and energy consumption and output structure: Evidence from China," Renewable Energy, Elsevier, vol. 219(P1).
    10. Jan K. Kazak & Joanna A. Kamińska & Rafał Madej & Marta Bochenkiewicz, 2020. "Where Renewable Energy Sources Funds are Invested? Spatial Analysis of Energy Production Potential and Public Support," Energies, MDPI, vol. 13(21), pages 1-26, October.
    11. Yanmei Li & Xin Sun & Xiushan Bai, 2022. "Differences of Carbon Emission Efficiency in the Belt and Road Initiative Countries," Energies, MDPI, vol. 15(4), pages 1-17, February.
    12. Dai, Xingyu & Xiao, Ling & Wang, Qunwei & Dhesi, Gurjeet, 2021. "Multiscale interplay of higher-order moments between the carbon and energy markets during Phase III of the EU ETS," Energy Policy, Elsevier, vol. 156(C).
    13. Ruhnau, O. & Bucksteeg, M. & Ritter, D. & Schmitz, R. & Böttger, D. & Koch, M. & Pöstges, A. & Wiedmann, M. & Hirth, L., 2022. "Why electricity market models yield different results: Carbon pricing in a model-comparison experiment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    14. Pöstges, Arne & Bucksteeg, Michael & Ruhnau, Oliver & Böttger, Diana & Haller, Markus & Künle, Eglantine & Ritter, David & Schmitz, Richard & Wiedmann, Michael, 2022. "Phasing out coal: An impact analysis comparing five large-scale electricity market models," Applied Energy, Elsevier, vol. 319(C).
    15. Scharf, Hendrik & Möst, Dominik, 2024. "Gas power — How much is needed on the road to carbon neutrality?," Energy Policy, Elsevier, vol. 187(C).
    16. Wang, Kai-Hua & Liu, Lu & Zhong, Yifan & Lobonţ, Oana-Ramona, 2022. "Economic policy uncertainty and carbon emission trading market: A China's perspective," Energy Economics, Elsevier, vol. 115(C).
    17. Feng Liu & Tao Lv & Yuan Meng & Xiaoran Hou & Jie Xu & Xu Deng, 2022. "Low-Carbon Transition Paths of Coal Power in China’s Provinces under the Context of the Carbon Trading Scheme," Sustainability, MDPI, vol. 14(15), pages 1-14, August.
    18. Cristiano Salvagnin & Aldo Glielmo & Maria Elena De Giuli & Antonietta Mira, 2024. "Investigating the price determinants of the European Emission Trading System: a non-parametric approach," Quantitative Finance, Taylor & Francis Journals, vol. 24(10), pages 1529-1544, October.
    19. Anke, Carl-Philipp & Möst, Dominik, 2021. "The expansion of RES and the EU ETS – valuable addition or conflicting instruments?," Energy Policy, Elsevier, vol. 150(C).
    20. Misconel, Steffi & Prina, Matteo Giacomo & Hobbie, Hannes & Möst, Dominik & Sparber, Wolfram, 2022. "How to determine bottom-up model-derived marginal CO₂ abatement cost curves with high temporal, sectoral, and techno-economic resolution?," EconStor Preprints 260472, ZBW - Leibniz Information Centre for Economics.
    21. Klöckner, Kai & Letmathe, Peter, 2020. "Is the coherence of coal phase-out and electrolytic hydrogen production the golden path to effective decarbonisation?," Applied Energy, Elsevier, vol. 279(C).
    22. Qiangfeng Li & Huabo Duan & Tianjiao Li & Yanjing Zhou & Ying Chen & Ruoyu Zhong, 2021. "Embodied carbon emissions of aluminum-containing commodities in international trade: China’s perspective," Climatic Change, Springer, vol. 166(3), pages 1-19, June.
    23. Helm, Carsten & Böhringer, Christoph, 2022. "Sector Coupling and Negative Leakage – Unilateral Climate Policies in the Presence of an ETS," VfS Annual Conference 2022 (Basel): Big Data in Economics 264109, Verein für Socialpolitik / German Economic Association.
    24. Rövekamp, Patrick & Schöpf, Michael & Wagon, Felix & Weibelzahl, Martin, 2023. "For better or for worse? On the economic and ecologic value of industrial demand side management in constrained electricity grids," Energy Policy, Elsevier, vol. 183(C).
    25. Nagel, Niels Oliver & Böhringer, Christoph & Rosendahl, Knut Einar & Bolkesjø, Torjus Folsland, 2023. "Impacts of green deal policies on the Nordic power market," Utilities Policy, Elsevier, vol. 80(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bruninx, Kenneth & Ovaere, Marten & Delarue, Erik, 2020. "The long-term impact of the market stability reserve on the EU emission trading system," Energy Economics, Elsevier, vol. 89(C).
    2. Osorio, Sebastian & Pietzcker, Robert C. & Pahle, Michael & Edenhofer, Ottmar, 2020. "How to deal with the risks of phasing out coal in Germany," Energy Economics, Elsevier, vol. 87(C).
    3. Quemin, Simon & Trotignon, Raphaël, 2021. "Emissions trading with rolling horizons," Journal of Economic Dynamics and Control, Elsevier, vol. 125(C).
    4. Sebastian Osorio & Robert C. Pietzcker & Michael Pahle & Ottmar Edenhofer, 2018. "How to Deal with the Risks of Phasing out Coal in Germany through National Carbon Pricing," CESifo Working Paper Series 7438, CESifo.
    5. Fatemeh Nazifi & George Milunovich, 2010. "Measuring the Impact of Carbon Allowance Trading on Energy Prices," Energy & Environment, , vol. 21(5), pages 367-383, September.
    6. Hirth, Lion & Ueckerdt, Falko, 2013. "Redistribution effects of energy and climate policy: The electricity market," Energy Policy, Elsevier, vol. 62(C), pages 934-947.
    7. Golombek, Rolf & Kittelsen, Sverre A.C. & Rosendahl, Knut Einar, 2013. "Price and welfare effects of emission quota allocation," Energy Economics, Elsevier, vol. 36(C), pages 568-580.
    8. Dai, Xingyu & Xiao, Ling & Wang, Qunwei & Dhesi, Gurjeet, 2021. "Multiscale interplay of higher-order moments between the carbon and energy markets during Phase III of the EU ETS," Energy Policy, Elsevier, vol. 156(C).
    9. Zhang, Yue-Jun & Wei, Yi-Ming, 2010. "An overview of current research on EU ETS: Evidence from its operating mechanism and economic effect," Applied Energy, Elsevier, vol. 87(6), pages 1804-1814, June.
    10. Koch, Nicolas & Fuss, Sabine & Grosjean, Godefroy & Edenhofer, Ottmar, 2014. "Causes of the EU ETS price drop: Recession, CDM, renewable policies or a bit of everything?—New evidence," Energy Policy, Elsevier, vol. 73(C), pages 676-685.
    11. Herweg, Fabian, 2020. "Overlapping efforts in the EU Emissions Trading System," Economics Letters, Elsevier, vol. 193(C).
    12. Fatemeh Nazifi, 2016. "The pass-through rates of carbon costs on to electricity prices within the Australian National Electricity Market," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(1), pages 41-62, January.
    13. Willner, Maximilian, 2018. "Consulting the chrystal ballː Firm's foresight and a cap-and-trade scheme with endogenous supply adjustments," WiSo-HH Working Paper Series 46, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.
    14. Andrianesis, Panagiotis & Biskas, Pandelis & Liberopoulos, George, 2021. "Evaluating the cost of emissions in a pool-based electricity market," Applied Energy, Elsevier, vol. 298(C).
    15. Ulrik Beck & Peter K. Kruse-Andersen, 2020. "Endogenizing the Cap in a Cap-and-Trade System: Assessing the Agreement on EU ETS Phase 4," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(4), pages 781-811, December.
    16. Nazifi, Fatemeh & Trück, Stefan & Zhu, Liangxu, 2021. "Carbon pass-through rates on spot electricity prices in Australia," Energy Economics, Elsevier, vol. 96(C).
    17. Li, Yan & Feng, Tian-tian & Liu, Li-li & Zhang, Meng-xi, 2023. "How do the electricity market and carbon market interact and achieve integrated development?--A bibliometric-based review," Energy, Elsevier, vol. 265(C).
    18. Bocklet, Johanna, 2020. "The Reformed EU ETS in Times of Economic Crises: the Case of the COVID-19 Pandemic," EWI Working Papers 2020-10, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    19. Simon Quemin & Raphael Trotignon, 2018. "Competitive Permit Storage and Market Design: An Application to the EU-ETS," Working Papers 2018.19, FAERE - French Association of Environmental and Resource Economists.
    20. El Khatib, Sameh & Galiana, Francisco D., 2019. "Investigating emission regulation policy in the electricity sector: modeling an oligopolistic electricity market under hourly cap-and-trade," Energy Economics, Elsevier, vol. 78(C), pages 428-443.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:144:y:2020:i:c:s0301421520303773. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.