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2021 | OriginalPaper | Buchkapitel

8. Externalities in Production and Consumption in Energy Markets

verfasst von : Machiel Mulder

Erschienen in: Regulation of Energy Markets

Verlag: Springer International Publishing

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Abstract

In well-functioning markets, economic agents are incentivized to take into account all effects of their decisions. Sometimes this is not possible because of externalities. Examples of externalities in energy markers are the environmental effects of using fossil energy and the impact of importing fossil energy on security of supply. This chapter first discusses how the various types of externalities in energy markets distort market outcomes (Sect. 8.2). Then, the chapter goes into the design of environmental taxes (Sect. 8.3), support schemes (Sect. 8.4) and emissions trading schemes (Sect. 8.5), before discussing how these three types of environmental regulation affect electricity markets and how they interact with each other (Sect. 8.6). The chapter concludes by discussing the regulation of security of supply externalities (Sect. 8.7).

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Metadaten
Titel
Externalities in Production and Consumption in Energy Markets
verfasst von
Machiel Mulder
Copyright-Jahr
2021
DOI
https://doi.org/10.1007/978-3-030-58319-4_8

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