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2007
Journal Article
Titel
Agent-based analysis of the impact of CO2 emission trading on spot market prices for electricity in Germany
Abstract
The introduction of the European Emission Trading System (EUETS) in the year 2005 has been characterised by increasing wholesale power prices across Europe. This price increase has led to a public discussion on the legitimacy of the integration of the price of the free of charge allocated CO 2 emission allowances into market prices of electricity. In this paper, we analyse the integration of different proportions of the daily actual emission allowance price into the bidding process for power plants on the German spot market and the resulting effect on the electricity prices for the year 2005. The analysis is carried out by an agent-based simulation model. The results indicate that approximately 75-100% of the CO 2 allowance price is passed through to the electricity price.
Author(s)