IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v36y2008i11p4154-4158.html
   My bibliography  Save this article

Climate policy and the social cost of power generation: Impacts of the Swedish national emissions target

Author

Listed:
  • Söderholm, Patrik
  • Pettersson, Fredrik

Abstract

The purpose of this paper is to discuss how the design of climate policy in a small open economy may affect the internalization of carbon-related external costs and ultimately the social choice between different power generation technologies. Empirically we focus on the Swedish case and analyze three climate policy regimes, out of which two represent different national goal formulations and thus compliance strategies. The results show that the social choice between power generation technologies in Sweden will be significantly influenced by the choice of climate policy regime. Most notably, if Sweden would abandon its present national target for carbon dioxide emissions and instead make full use of the country's participation in international emissions trading, natural gas-fired power would replace onshore wind power as the power generation source with the lowest social cost.

Suggested Citation

  • Söderholm, Patrik & Pettersson, Fredrik, 2008. "Climate policy and the social cost of power generation: Impacts of the Swedish national emissions target," Energy Policy, Elsevier, vol. 36(11), pages 4154-4158, November.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:11:p:4154-4158
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(08)00411-4
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    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. Tol, Richard S. J., 2005. "The marginal damage costs of carbon dioxide emissions: an assessment of the uncertainties," Energy Policy, Elsevier, vol. 33(16), pages 2064-2074, November.
    2. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801, September.
    3. William D. Nordhaus, 2007. "A Review of the Stern Review on the Economics of Climate Change," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 686-702, September.
    4. Miranda, Marie Lynn & Hale, Brack, 2001. "Protecting the forest from the trees: the social costs of energy production in Sweden," Energy, Elsevier, vol. 26(9), pages 869-889.
    5. Martin L. Weitzman, 2007. "A Review of the Stern Review on the Economics of Climate Change," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 703-724, September.
    6. Söderholm, Patrik, 2008. "The political economy of international green certificate markets," Energy Policy, Elsevier, vol. 36(6), pages 2051-2062, June.
    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. Hongjie Sun & Shuwen Niu & Xiqiang Wang, 2019. "Future Regional Contributions for Climate Change Mitigation: Insights from Energy Investment Gap and Policy Cost," Sustainability, MDPI, vol. 11(12), pages 1-17, June.
    2. Honma, Satoshi & Hu, Jin-Li, 2009. "Total-factor energy productivity growth of regions in Japan," Energy Policy, Elsevier, vol. 37(10), pages 3941-3950, October.
    3. Michanek, Gabriel & Söderholm, Patrik, 2009. "Licensing of nuclear power plants: The case of Sweden in an international comparison," Energy Policy, Elsevier, vol. 37(10), pages 4086-4097, October.
    4. Söderholm, Patrik & Wårell, Linda, 2011. "Market opening and third party access in district heating networks," Energy Policy, Elsevier, vol. 39(2), pages 742-752, February.
    5. Schaffrin, André & Reibling, Nadine, 2015. "Household energy and climate mitigation policies: Investigating energy practices in the housing sector," Energy Policy, Elsevier, vol. 77(C), pages 1-10.
    6. Krook Riekkola, Anna & Ahlgren, Erik O. & Söderholm, Patrik, 2011. "Ancillary benefits of climate policy in a small open economy: The case of Sweden," Energy Policy, Elsevier, vol. 39(9), pages 4985-4998, September.

    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. Stephanie MacLeod & Yves Filion, 2012. "Issues and Implications of Carbon-Abatement Discounting and Pricing for Drinking Water System Design in Canada," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(1), pages 43-61, January.
    2. Rick Baker & Andrew Barker & Alan Johnston & Michael Kohlhaas, 2008. "The Stern Review: an assessment of its methodology," Staff Working Papers 0801, Productivity Commission, Government of Australia.
    3. Glaeser, Edward L. & Kahn, Matthew E., 2010. "The greenness of cities: Carbon dioxide emissions and urban development," Journal of Urban Economics, Elsevier, vol. 67(3), pages 404-418, May.
    4. Bosetti, Valentina & Carraro, Carlo & De Cian, Enrica & Massetti, Emanuele & Tavoni, Massimo, 2013. "Incentives and stability of international climate coalitions: An integrated assessment," Energy Policy, Elsevier, vol. 55(C), pages 44-56.
    5. Van Dender, Kurt, 2009. "Energy policy in transport and transport policy," Energy Policy, Elsevier, vol. 37(10), pages 3854-3862, October.
    6. Pycroft, Jonathan & Vergano, Lucia & Hope, Chris & Paci, Daniele & Ciscar, Juan Carlos, 2011. "A tale of tails: Uncertainty and the social cost of carbon dioxide," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 5, pages 1-29.
    7. Yohe, Gary W. & Tol, Richard S. J. & Anthoff, David, 2009. "Discounting for Climate Change," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-22.
    8. baptiste perrissin fabert & Etienne Espagne & Antonin Pottier & Franck Nadaus, 2012. "Disentangling the Stern/Nordhaus controversy. Why and how do beliefs and modelling choices matter?," EcoMod2012 4270, EcoMod.
    9. Hepburn, Cameron & Koundouri, Phoebe & Panopoulou, Ekaterini & Pantelidis, Theologos, 2009. "Social discounting under uncertainty: A cross-country comparison," Journal of Environmental Economics and Management, Elsevier, vol. 57(2), pages 140-150, March.
    10. Simon Dietz, 2011. "High impact, low probability? An empirical analysis of risk in the economics of climate change," Climatic Change, Springer, vol. 108(3), pages 519-541, October.
    11. Valentina Bosetti & Carlo Carraro & Enrica De Cian & Romain Duval & Emanuele Massetti & Massimo Tavoni, 2009. "The Incentives to Participate in, and the Stability of, International Climate Coalitions: A Game-theoretic Analysis Using the Witch Model," Working Papers 2009.64, Fondazione Eni Enrico Mattei.
    12. Carlo Carraro & Valentina Bosetti & Enrica De Cian & Romain Duval & Emanuele Massetti & Massimo Tavoni, 2009. "The incentives to participate in and the stability of international climate coalitions: a game theoretic approach using the WITCH Model," Working Papers 2009_28, Department of Economics, University of Venice "Ca' Foscari".
    13. Stéphane Hallegatte, 2008. "A Proposal for a New Prescriptive Discounting Scheme: The Intergenerational Discount Rate," Working Papers 2008.47, Fondazione Eni Enrico Mattei.
    14. Steve Newbold & Charles Griffiths & Christopher C. Moore & Ann Wolverton & Elizabeth Kopits, 2010. "The "Social Cost of Carbon" Made Simple," NCEE Working Paper Series 201007, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Aug 2010.
    15. Richard Tol, 2011. "Regulating knowledge monopolies: the case of the IPCC," Climatic Change, Springer, vol. 108(4), pages 827-839, October.
    16. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    17. Deegen, Peter & Matolepszy, Kai, 2015. "Economic balancing of forest management under storm risk, the case of the Ore Mountains (Germany)," Journal of Forest Economics, Elsevier, vol. 21(1), pages 1-13.
    18. Philippe Aghion & Antoine Dechezleprêtre & David Hémous & Ralf Martin & John Van Reenen, 2016. "Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 1-51.
    19. Vipul Bhatt & Masao Ogaki & Yuichi Yaguchi, 2017. "Introducing Virtue Ethics into Normative Economics for Models with Endogenous Preferences," RCER Working Papers 600, University of Rochester - Center for Economic Research (RCER).
    20. Stefano Giglio & Bryan Kelly & Johannes Stroebel, 2021. "Climate Finance," Annual Review of Financial Economics, Annual Reviews, vol. 13(1), pages 15-36, November.

    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:36:y:2008:i:11:p:4154-4158. 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.