|
EconStor >
Max Planck Institute for Research on Collective Goods, Bonn >
Preprints of the Max Planck Institute for Research on Collective Goods >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/32221
|
| | |
| Title: | | Prices versus quantities in electricity generation  |
| Authors: | | Hahmeier, Mark |
| Issue Date: | | 2009 |
| Series/Report no.: | | Preprints of the Max Planck Institute for Research on Collective Goods 2009,27 |
| Abstract: | | This paper examines the prices versus quantities issue, originally raised by Weitzman [8], in the context of carbon dioxide emissions and with a special focus on electricity generation. Within a simpli ed model of the electricity market, in which we explicitly allow for a monopolistic gas supplier, we employ a game-theoretic approach and ask, from a welfare perspective, for the superior regulatory regime in response to an expected exercise of market power. Our analysis studies the optimal regulation in each regime and shows that, in the presence of market power in the gas market, taxes rather than permits are the regulator's welfare-maximizing regime choice. |
| Subjects: | | Climate change regulation taxes emission permits market power gas welfare |
| JEL: | | H23 L51 L94 Q54 Q58 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Preprints of the Max Planck Institute for Research on Collective Goods
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/32221
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|