CO2 trade and market power in the EU electricity sector

摘要: The EU commission is planning to launch an emission trading market for greenhouse gases within near future. This meet its obligations under the United Nations Framework Convention on Climate Change and Kyoto Protocol. After a theoretical discussion power in such market, we turn empirical evidence which suggests that reasonable number of sources CO2 emissions sector exists boilers larger than 25MW. Overall, together with contestable single electricity, risk significant strategic behaviour seems negligible. Thus, electric utility suitable testing ground EU-scheme trading. In longer run, it will be important broaden scope scheme as inclusion other sectors further limit power.