The political economy of a carbon price floor for power generation
dc.contributor.author | Newbery, David | |
dc.contributor.author | Reiner, David | |
dc.contributor.author | Ritz, Robert | |
dc.date.accessioned | 2019-01-17T00:30:24Z | |
dc.date.available | 2019-01-17T00:30:24Z | |
dc.date.issued | 2019-01 | |
dc.identifier.issn | 0195-6574 | |
dc.identifier.uri | https://www.repository.cam.ac.uk/handle/1810/288090 | |
dc.description.abstract | The EU carbon price lies well below estimates of the social cost of carbon and “target- consistent” carbon prices needed to deliver ambitious targets such as the 40% reduction target for 2030. In light of this, the UK introduced a carbon price floor (CPF) for its electricity sector in 2013 and the new Dutch Government has recently made a similar commitment, while successive French Governments have called for an EU-wide CPF. This paper analyzes the impacts and design of a power-sector CPF, both at the EU and national level, using a political-economy approach. We find a good case for introducing such a price-based instrument into the EU ETS. We suggest that a CPF should be designed to “top up” the EUA price to €25–30/tCO2, rising annually at 3–5% above inflation, at least until 2030. We argue that the new EU Market Stability Reserve enhances the value of a CPF in terms of delivering climate benefits, and discuss the potential for a regional CPF in North-West Europe. We also review international policy experience with price floors (and ceilings). | |
dc.description.sponsorship | Iberdrola | |
dc.publisher | International Association for Energy Economics | |
dc.title | The political economy of a carbon price floor for power generation | |
dc.type | Article | |
prism.issueIdentifier | 1 | |
prism.publicationDate | 2019 | |
prism.publicationName | Energy Journal | |
prism.volume | 40 | |
dc.identifier.doi | 10.17863/CAM.35405 | |
dcterms.dateAccepted | 2018-11-03 | |
rioxxterms.versionofrecord | 10.5547/01956574.40.1.dnew | |
rioxxterms.version | AM | |
rioxxterms.licenseref.uri | http://www.rioxx.net/licenses/all-rights-reserved | |
rioxxterms.licenseref.startdate | 2019-01 | |
dc.contributor.orcid | Reiner, David [0000-0003-2004-8696] | |
dc.identifier.eissn | 1944-9089 | |
rioxxterms.type | Journal Article/Review | |
cam.issuedOnline | 2019-01-01 | |
cam.orpheus.success | Thu Jan 30 10:53:05 GMT 2020 - Embargo updated | |
rioxxterms.freetoread.startdate | 2022-01-01 |
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