Print Email Facebook Twitter Impacts of the introduction of CO2 price floors in a two-country electricity maket model Title Impacts of the introduction of CO2 price floors in a two-country electricity maket model Author Richstein, J.C. Chappin, E.J.L. De Vries, L.J. Faculty Technology, Policy and Management Department Infrastructures, Systems and Services Date 2012-12-31 Abstract The recent low of CO2 prices in the European Union Emission Trading Scheme have triggered a renewed discussion, whether the introduction of a CO2 price oor would lower investor uncertainty and thus trigger more investment in low-carbon electricity generation. We compare the effects of a CO2 price floor on the dynamic investment pathway of an interlinked two country electricity system with a common CO2 emissiontrading scheme using a long-term focused agent-based model. Four cases are distinguished: No CO2 price floor, a CO2 price floor unilaterally levied as a complimentary variable tax on production in only one country and a common CO2 price floor in two countries. Preliminary results indicate that while a national price floor reduces price variance in the introducing country, the overall CO2 price variance increases. A common CO2 price oor was found to decrease overall price variance. Subject CO2 Policy, EU-ETS, CO2 price floor, ABM To reference this document use: http://resolver.tudelft.nl/uuid:9bcad333-c921-4518-a2e7-19ffe6175621 Publisher IAEE Source 12th IAEE European Energy Conference "Energy Challenge and Environmental Sustainability", Venice, Italy, 9-12- September 2012 Part of collection Institutional Repository Document type conference paper Rights (c) 2012 Richstein, J.C., Chappin, E.J.L., De Vries, L.J. Files PDF 289319.pdf 486.18 KB Close viewer /islandora/object/uuid:9bcad333-c921-4518-a2e7-19ffe6175621/datastream/OBJ/view