Emission Allowances – a New Production Factor in the Power Sector

  • Wolf Fichtner
Chapter

Abstract

The European CO2 emission trading scheme results in a new input factor for CO2 emission-intensive companies. Therefore, one of the objectives of this chapter is to characterise this new input factor. Emission trading and possible mechanisms of allocating allowances to existing and new installations are also discussed. Different effects of emission trading in general and of the European CO2 emission trading scheme in particular are explained. Finally, the author shows how energy models can be used to develop consistent strategies for power companies within the framework of an emission trading scheme.

Keywords

emission trading allocation of allowances investment planning 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  • Wolf Fichtner
    • 1
  1. 1.Energy EconomicsUniversität Karlsruhe (TH)Germany

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