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Alternative Environmental Regulation Schemes for the Belgian Power Generation Sector

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  • A. Bigano
  • S. Proost
  • J. Van Rompuy

Abstract

This paper discusses the effects of alternative waysof using external cost estimates to regulateinvestments and generation in the electricityproduction sector. Starting from the existing system,four alternatives are considered: emission taxes forthe utility and for independent producers, emissiontaxes limited to the electric utility, emissionpermits limited to the electric utility and finally asystem where only investments are regulated, anddispatch is not. Taking external damage estimates fromthe literature, these alternatives are compared usinga dynamic partial equilibrium model of the Belgianelectricity market for the period 1995–2034. Theefficiency and distribution effects of the alternativeenvironmental policy instruments are quantified. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • A. Bigano & S. Proost & J. Van Rompuy, 2000. "Alternative Environmental Regulation Schemes for the Belgian Power Generation Sector," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(2), pages 121-160, June.
    • Handle: RePEc:kap:enreec:v:16:y:2000:i:2:p:121-160
    DOI: 10.1023/A:1008340402750
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    References listed on IDEAS

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    Cited by:

    1. Soderholm, Patrik & Sundqvist, Thomas, 2003. "Pricing environmental externalities in the power sector: ethical limits and implications for social choice," Ecological Economics, Elsevier, vol. 46(3), pages 333-350, October.
    2. Kudelko, Mariusz, 2006. "Internalisation of external costs in the Polish power generation sector: A partial equilibrium model," Energy Policy, Elsevier, vol. 34(18), pages 3409-3422, December.

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