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Carbon Charges in Electricity Markets with Strategic Behavior and Transmission

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  • Anthony Downward

Abstract

We examine the effect of introducing a carbon charge on electricity generation. We model this by way of a two generator Cournot game over a two node electricity network. We find that within the electricity system, emissions of carbon dioxide can increase after a carbon charge is introduced.

Suggested Citation

  • Anthony Downward, 2010. "Carbon Charges in Electricity Markets with Strategic Behavior and Transmission," The Energy Journal, , vol. 31(4), pages 159-166, October.
    • Handle: RePEc:sae:enejou:v:31:y:2010:i:4:p:159-166
    DOI: 10.5547/ISSN0195-6574-EJ-Vol31-No4-7
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