Carrillo-Hermosilla, Javier and Del Río, Pablo and Könnölä, Totti and García, Carlos (2006): The competitive environment of the European electricity sector in the post-Kyoto scenarios.
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This paper shows how the uncertainty associated to the absence of a post-Kyoto regime regarding Greenhouse Gas mitigation is affecting investments in mitigation activities in the EU electricity sector and, thus, future emissions levels. Based on a wide survey of EU power companies, the paper identifies the most likely post-Kyoto scenarios considered by these firms and how they are coping with such uncertainty in their current investment decisions. The major conclusion is that the non-existence of a post-Kyoto regime is having a negative effect on current business investment decisions in mitigation activities, increasing risk premiums and financing costs. All in all, the companies surveyed foresee post-Kyoto compliance regimes with emissions trading systems that would guarantee the continuity of the value of the reductions made beforehand, although they differ in their perceptions of the form that a post-Kyoto regime could take.
|Item Type:||MPRA Paper|
|Original Title:||The competitive environment of the European electricity sector in the post-Kyoto scenarios|
|Keywords:||Post-Kyoto scenarios; EU electricity sector; investment decisions|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy
L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L94 - Electric Utilities
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O52 - Europe
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters; Global Warming
|Depositing User:||Javier Carrillo-Hermosilla|
|Date Deposited:||22. Dec 2009 07:02|
|Last Modified:||12. Feb 2013 00:43|
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