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An equilibrium model of the energy market is extended by a carbon emissions market. In addition, the mix of renewable energy sources is optimized given a limit on total generation. These two new features are integrated into an existing model to assess the effects of a carbon emissions market in a case study of the northern European power system. First, a fixed carbon emissions tax is deployed, revealing...
As the EU's Emissions Trading Scheme has, up to date, had little impact on the reduction of CO2 emissions in Europe, direct carbon taxes have been proposed. In this work, high spatial and temporal resolution optimal power flow simulations are conducted to assess the impact of carbon taxes on the inter-connected power system in central Europe. As both individual transmission lines and individual power...
A major challenge facing policy makers in climate policy design is how to reduce greenhouse gas emissions at the lowest cost to the economy. The interactions of climate change policies with the tax system become relevant in this context. This paper investigates these interactions, by analyzing the impacts, both at the macroeconomic and sectoral levels, of the distinct redistribution of carbon tax...
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