Cross-Country Electricity Trade, Renewable Energy and European Transmission Infrastructure Policy

Arbeitspapier

This paper develops a multi-country multi-sector general equilibrium model, integrating high-frequency electricity dispatch and trade decisions, to study the e ects of electricity transmission infrastructure (TI) expansion and re- newable energy (RE) penetration in Europe for gains from trade and carbon dioxide emissions in the power sector. TI can bene t or degrade environ- mental outcomes, depending on RE penetration: it complements emissions abatement by mitigating dispatch problems associated with volatile and spa- tially dispersed RE but also promotes higher average generation from low- cost coal if RE production is too low. Against the backdrop of European decarbonization and planned TI expansion, we nd that emissions increase for current and targeted year-2020 levels of RE production and decrease for year-2030 targets. Enhanced TI yields sizeable gains from trade that de- pend positively on RE penetration, without creating large adverse impacts on regional equity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economics Working Paper Series ; No. 16/229

Classification and Topics

• Classification: Wirtschaft ; Trade and Environment ; Renewable Resources and Conservation: Government Policy ; Energy and the Macroeconomy ; Energy: Government Policy ; Computable General Equilibrium Models
• Subject: Stromnetz ; Erneuerbare Energie ; Infrastrukturpolitik ; Elektrizität ; Außenhandel ; Allgemeines Gleichgewicht ; EU-Energiepolitik ; EU-Umweltpolitik ; Mehr-Länder-Modell ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Abrell, Jan ; Rausch, Sebastian
• Event: Veröffentlichung
• (who): ETH Zurich, CER-ETH - Center of Economic Research
• (where): Zurich
• (when): 2016

Further information

• DOI: doi:10.3929/ethz-a-010579361
• Handle: http://hdl.handle.net/10419/171672
• Last update: 10.03.2025, 11:43 AM CET