Policies for decarbonizing a liberalized power sector

Artikel

Given the agreed urgency of decarbonizing electricity and the need to guide decentralized private decisions, an adequate and credible carbon price appears essential. The paper models and quantifies the break-even carbon price for mature zero-carbon electricity investments. It appears an attractive alternative given the difficulty of measuring the social cost of carbon, but modelling shows it extremely sensitive to projected fuel prices, the rate of interest, and the capital cost of generation options, all of which are very uncertain. This has important implications, and justifies combining a carbon price floor with suitable long-term contracts for electricity investments.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 12 ; Year: 2018 ; Issue: 2018-40 ; Pages: 1-24 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification and Topics

• Classification: Wirtschaft ; Miscellaneous Mathematical Tools ; Alternative Energy Sources ; Energy: Government Policy ; Valuation of Environmental Effects ; Climate; Natural Disasters and Their Management; Global Warming
• Subject: carbon price ; electricity ; investment ; renewables

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Newbery, David
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2018

Further information

• DOI: doi:10.5018/economics-ejournal.ja.2018-40
• Handle: http://hdl.handle.net/10419/179931